Batas Pambansa 185 

AN ACT TO IMPLEMENT SECTION FIFTEEN OF ARTICLE XIV OF THE CONSTITUTION AND FOR OTHER PURPOSES 

Section 1. In Implementation of Section fifteen of Article XIV of the Constitution, a natural-born citizen of the Philippines who has lost his Philippine citizenship may be a transferee of a private land, for use by him as his residence, subject to the provisions of this Act. 

Section 2. Any natural-born citizen of the Philippines who has lost his Philippine citizenship and who has the legal capacity to enter into a contract under Philippine laws may be a transferee of a private land up to a maximum area of one thousand square meters, in the case of urban land, or one hectare in the case of rural land, to be used by him as his residence.? In the case of married couples, one of them may avail of the privilege herein granted; Provided, That if both shall avail of the same, the total area acquired shall not exceed the maximum herein fixed. 

In case the transferee already owns urban or rural lands for residential purposes, he shall still be entitled to be a transferee of additional urban or rural lands for residential purposes which, when added to those already owned by him, shall not exceed the maximum areas herein authorized.

Section 3. A transferee under this Act may acquire not more than two lots which should be situated in different municipalities or cities anywhere in the Philippines; Provided, That the total area thereof shall not exceed one thousand square meters in the case of urban lands or one hectare in the case of rural lands for use by him as urban land shall be disqualified from acquiring rural land, and vice versa.

Section 4. As used in this Act – a) A natural-born citizen is one who is a citizen of the Philippines from birth without having to perform any act to acquire or perfect his Philippine citizenship. b) Urban areas shall include:

1. In their entirety, all municipal jurisdictions which whether designated as chartered cities,provincial capitals or not, have a population density of at least 1,000 persons per square kilometer;

2. Poblaciones or central districts of municipalities and cities which have a population density of  at least 500 persons per square kilometer;

3. Poblaciones or central districts (not included in 1 and 2) regardless of population size which have the following: 

    * Street pattern, i.e., network of streets in either at parallel or right angle orientation    * At least six establishments (commercial, manufacturing, recreational and/or personalservices)    * At least three of the following:

                1. A town hall, church or chapel with religious services at least once a month;

                2. A public plaza, park or cemetery;

                3. A market place or building where trading activities are carried on at least once aweek;

                4. A public building like a school, hospital, puericulture and health center or library.

4. Barangays having at least 1,000 inhabitants which meet the conditions set forth in sub-paragraph (3) of paragraph (b) above, and in which the occupation of the inhabitants is predominantly other than farming or fishing. c) All other areas of the Philippines which do not meet the conditions in the preceding definition of urban areas shall be considered as rural areas.  

Section 5. Transfer as a mode of acquisition of private land under this Act refers to either voluntary or involuntary sale, devise or donation.? Involuntary sales shall include sales on tax delinquency, foreclosures and executions of judgment. 

Section 6. In addition to the requirements provided for in other laws for the registration of titles to lands, no private land shall be transferred under this Act, unless the transferee shall submit to the register of deeds of the province or city where the property is located a sworn statement showing the date and place of his birth; the names and addresses of his parents, of his spouse and children, if any; the area, location and the mode of acquisition of his land-holdings in the Philippines, if any; his intention to reside permanently in the Philippines; the date he lost his Philippine citizenship and the country of which he is presently a citizen; and such other information as may be required Section 8 of this Act. 

Section 7. The transferee shall not use the lands acquired under this Act for any purpose other than for his residence. Violations of this Section, any misinterpretation in the sworn statement required under Section 6 hereof, any acquired within two years from the acquisition thereof, except when such failure is Code and deportation in appropriate cases, be penalized by forfeiture of such lands and their improvements to the National Government. For this purpose the Solicitor General or his representative shall institute escheat proceedings. Any transferee liable under this Section shall moreover be forever barred from further availing of the privilege granted under this Act. 

Section 8. The Minister of Justice shall issue such rules and regulations as may be necessary to carry out the provisions of this Act. Such rules and regulations shall take effect fifteen days following its publication in a newspaper of general circulation in the Philippines. 

Section 9. If any part of this Act shall be declared unconstitutional, the remaining provisions not thereby affected shall remain in full force and effect. Section 10. This Act shall take effect upon its approval.

Approved: March 16, 1982

BATAS PAMBANSA BLG. 220

AN ACT AUTHORIZING THE MINISTRY OF HUMANSETTLEMENTS TO ESTABLISH AND PROMULGATE

DIFFERENT LEVELS OF STANDARDS AND TECHNICALREQUIREMENTS FOR ECONOMIC AND SOCIALIZEDHOUSING PROJECTS IN URBAN AND RURAL AREAS

FROM THOSE PROVIDED UNDER PRESIDENTIALDECREES NUMBERED NINE HUNDRED FIFTY-SEVEN,

TWELVE HUNDRED SIXTEEN, TEN HUNDRED NINETY-SIXAND ELEVEN HUNDRED EIGHTY-FIVE

BE IT ENACTED BY THE BATASANG PAMBANSA IN SESSION ASSEMPLED:

SECTION 1. It is hereby declared a policy of the Government to promote and encourage the development of economic and socialized housing projects, primarily by the private sector, in order to make available adequate economic and socialized housing units for average and low-income earners in urban and rural areas. SECTION 2. As used in this Act, economic and socialized housing refers to housing units which are within the affordability level of the average and low-income earners which is thirty percent (30%) of the gross family income as determined by the National Economic and Development Authority from time to time. It shall also refer to the government-initiated sites and services development and construction of economic and socialized housing projects in depressed areas.

SECTION 3. To carry out the foregoing policy, the Ministry of Human Settlements is authorized to establish and promulgate different levels of standards and technical requirements for the development of economic and socialized housing projects and economic and socialized housing units in urban and rural areas from those provided in Presidential Decree Numbered Nine hundred fifty-seven, otherwise known as the "Subdivision and Condominium Buyers' Protective Decree," Presidential Decree Numbered Twelvehundred and sixteen, "Defining Open Space in Residential Subdivision"; Presidential Decree Numbered Ten Hundred and ninety-six, otherwise known as the "National Building Code of the Philippines"; and Presidential Decree Numbered Eleven hundred and eighty-five, otherwise known as the "Fire Code of the Philippines" and the rules and regulations promulgated thereunder, in consultation with the Ministry of Public Works and Highways, the Integrated National Police, and other appropriate government units and instrumentalities and private associations.

SECTION 4. The standards and technical requirements to be established under Section three hereof shall provide for environmental ecology, hygiene and cleanliness, physical, cultural and spiritual development and public safety and may vary in each region, province or city depending on the availability of indigenous materials for building construction and other relevant factors. SECTION 5. The different levels of standards and technical requirements that shall be established and promulgated by the Ministry of Human Settlements only after public hearing and shall be published in two newspapers of general circulation in the Philippines for at least once a week for two consecutive weeks and shall take effect thirtydays after the last publication.

SECTION 6. This Act shall take effect upon its approval.

PRESIDENTIAL DECREE No. 957 July 12, 1976

REGULATING THE SALE OF SUBDIVISION LOTS AND CONDOMINIUMS, PROVIDING PENALTIES FOR VIOLATIONS THEREOF

WHEREAS, it is the policy of the State to afford its inhabitants the requirements of decent human settlement and to provide them with ample opportunities for improving their quality of life;

WHEREAS, numerous reports reveal that many real estate subdivision owners, developers, operators, and/or sellers have reneged on their representations and obligations to provide and maintain properly subdivision roads, drainage, sewerage, water systems, lighting systems, and other similar basic requirements, thus endangering the health and safety of home and lot buyers;

WHEREAS, reports of alarming magnitude also show cases of swindling and fraudulent manipulations perpetrated by unscrupulous subdivision and condominium sellers and operators, such as failure to deliver titles to the buyers or titles free from liens and encumbrances, and to pay real estate taxes, and fraudulent sales of the same subdivision lots to different innocent purchasers for value;

WHEREAS, these acts not only undermine the land and housing program of the government but also defeat the objectives of the New Society, particularly the promotion of peace and order and the enhancement of the economic, social and moral condition of the Filipino people;

WHEREAS, this state of affairs has rendered it imperative that the real estate subdivision and condominium businesses be closely supervised and regulated, and that penalties be imposed on fraudulent practices and manipulations committed in connection therewith.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby decree and order:

Title ITITLE AND DEFINITIONS

Section 1. Title. This Decree shall be known as THE SUBDIVISION AND CONDOMINIUM BUYERS' PROTECTIVE DECREE.

Section 2. Definition of Terms When used in this Decree, the following terms shall, unless the context otherwise indicates, have the following respective meanings:

(a) Person. "Person" shall mean a natural or a juridical person. A juridical person refers to a business firm whether a corporation, partnership, cooperative or associations or a single proprietorship.

(b) Sale or sell. "Sale" or "sell" shall include every disposition, or attempt to dispose, for a valuable consideration, of a subdivision lot, including the building and other improvements thereof, if any, in a subdivision project or a condominium unit in a condominium project. "Sale" and "sell" shall also include a contract to sell, a contract of purchase and sale, an exchange, an attempt to sell, an option of sale or purchase, a solicitation of a sale, or an offer to sell, directly or by an agent, or by a circular, letter, advertisement or otherwise.

A privilege given to a member of a cooperative, corporation, partnership, or any association and/or the issuance of a certificate or receipt evidencing or giving the right of participation in, or right to, any land in consideration of payment of the membership fee or dues, shall be deemed a sale within the meaning of this definition.

(c) Buy and purchase. The "buy" and "purchase" shall include any contract to buy, purchase, or otherwise acquire for a valuable consideration a subdivision lot, including the building and other improvements, if any, in a subdivision project or a condominium unit in a condominium project.

(d) Subdivision project. "Subdivision project" shall mean a tract or a parcel of land registered under Act No. 496 which is partitioned primarily for residential purposes into individual lots with or without improvements thereon, and offered to the public for sale, in cash or in installment terms. It shall include all residential, commercial, industrial and recreational areas as well as open spaces and other community and public areas in the project.

(e) Subdivision lot. "Subdivision lot" shall mean any of the lots, whether residential, commercial, industrial, or recreational, in a subdivision project.

(f) Complex subdivision plan. "Complex subdivision plan" shall mean a subdivision plan of a registered land wherein a street, passageway or open space is delineated on the plan.

(g) Condominium project. "Condominium project" shall mean the entire parcel of real property divided or to be divided primarily for residential purposes into condominium units, including all structures thereon.

(h) Condominium unit. "Condominium unit" shall mean a part of the condominium project intended for any type of independent use or ownership, including one or more rooms or spaces located in one or more floors (or part of parts of floors) in a building or buildings and such accessories as may be appended thereto.

(i) Owner. "Owner" shall refer to the registered owner of the land subject of a subdivision or a condominium project.

(j) Developer. "Developer" shall mean the person who develops or improves the subdivision project or condominium project for and in behalf of the owner thereof.

(k) Dealer. "Dealer" shall mean any person directly engaged as principal in the business of buying, selling or exchanging real estate whether on a full-time or part-time basis.

(l) Broker. "Broker" shall mean any person who, for commission or other compensation, undertakes to sell or negotiate the sale of a real estate belonging to another.

(m) Salesman. "Salesman" shall refer to the person regularly employed by a broker to perform, for and in his behalf, any or all functions of a real estate broker.

(n) Authority. "Authority" shall mean the National Housing Authority.

Title IIREGISTRATION AND LICENSE TO SELL

Section 3. National Housing Authority The National Housing Authority shall have exclusive jurisdiction to regulate the real estate trade and business in accordance with the provisions of this Decree.

Section 4. Registration of Projects The registered owner of a parcel of land who wishes to convert the same into a subdivision project shall submit his subdivision plan to the Authority which shall act upon and approve the same, upon a finding that the plan complies with the Subdivision Standards' and Regulations enforceable at the time the plan is submitted. The same procedure shall be followed in the case of a plan for a condominium project except that, in addition, said Authority shall act upon and approve the plan with respect to the building or buildings included in the condominium project in accordance with the National Building Code (R.A. No. 6541).

The subdivision plan, as so approved, shall then be submitted to the Director of Lands for approval in accordance with the procedure prescribed in Section 44 of the Land Registration Act (Act No. 496, as amended by R.A. No. 440): Provided, that it case of complex subdivision plans, court approval shall no longer be required. The condominium plan as likewise so approved, shall be submitted to the Register of Deeds of the province or city in which the property lies and the same shall be acted upon subject to the conditions and in accordance with the procedure prescribed in Section 4 of the Condominium Act (R.A. No. 4726).

The owner or the real estate dealer interested in the sale of lots or units, respectively, in such subdivision project or condominium project shall register the project with the Authority by filing therewith a sworn registration statement containing the following information:

(a) Name of the owner;

(b) The location of the owner's principal business office, and if the owner is a non-resident Filipino, the name and address of his agent or representative in the Philippines is authorized to receive notice;

(c) The names and addresses of all the directors and officers of the business firm, if the owner be a corporation, association, trust, or other entity, and of all the partners, if it be a partnership;

(d) The general character of the business actually transacted or to be transacted by the owner; and

(e) A statement of the capitalization of the owner, including the authorized and outstanding amounts of its capital stock and the proportion thereof which is paid-up.

The following documents shall be attached to the registration statement:

(a) A copy of the subdivision plan or condominium plan as approved in accordance with the first and second paragraphs of this section.

(b) A copy of any circular, prospectus, brochure, advertisement, letter, or communication to be used for the public offering of the subdivision lots or condominium units;

(c) In case of a business firm, a balance sheet showing the amount and general character of its assets and liabilities and a copy of its articles of incorporation or articles of partnership or association, as the case may be, with all the amendments thereof and existing by-laws or instruments corresponding thereto.

(d) A title to the property which is free from all liens and encumbrances: Provided, however, that in case any subdivision lot or condominium unit is mortgaged, it is sufficient if the instrument of mortgage contains a stipulation that the mortgagee shall release the mortgage on any subdivision lot or condominium unit as soon as the full purchase price for the same is paid by the buyer.

The person filing the registration statement shall pay the registration fees prescribed therefor by the Authority.

Thereupon, the Authority shall immediately cause to be published a notice of the filing of the registration statement at the expense of the applicant-owner or dealer, in two newspapers general circulation, one published in English and another in Pilipino, once a week for two consecutive weeks, reciting that a registration statement for the sale of subdivision lots or condominium units has been filed in the National Housing Authority; that the aforesaid registration statement, as well as the papers attached thereto, are open to inspection during business hours by interested parties, under such regulations as the Authority may impose; and that copies thereof shall be furnished to any party upon payment of the proper fees.

The subdivision project of the condominium project shall be deemed registered upon completion of the above publication requirement. The fact of such registration shall be evidenced by a registration certificate to be issued to the applicant-owner or dealer.

Section 5. License to sell. Such owner or dealer to whom has been issued a registration certificate shall not, however, be authorized to sell any subdivision lot or condominium unit in the registered project unless he shall have first obtained a license to sell the project within two weeks from the registration of such project.

The Authority, upon proper application therefor, shall issue to such owner or dealer of a registered project a license to sell the project if, after an examination of the registration statement filed by said owner or dealer and all the pertinent documents attached thereto, he is convinced that the owner or dealer is of good repute, that his business is financially stable, and that the proposed sale of the subdivision lots or condominium units to the public would not be fraudulent.

Section 6. Performance Bond. No license to sell subdivision lots or condominium units shall be issued by the Authority under Section 5 of this Decree unless the owner or dealer shall have filed an adequate performance bond approved by said Authority to guarantee the construction and maintenance of the roads, gutters, drainage, sewerage, water system, lighting systems, and full development of the subdivision project or the condominium project and the compliance by the owner or dealer with the applicable laws and rules and regulations.

The performance bond shall be executed in favor of the Republic of the Philippines and shall authorize the Authority to use the proceeds thereof for the purposes of its undertaking in case of forfeiture as provided in this Decree.

Section 7. Exempt transactions. A license to sell and performance bond shall not be required in any of the following transactions:

(a) Sale of a subdivision lot resulting from the partition of land among co-owners and co-heirs.

(b) Sale or transfer of a subdivision lot by the original purchaser thereof and any subsequent sale of the same lot.

(c) Sale of a subdivision lot or a condominium unit by or for the account of a mortgagee in the ordinary course of business when necessary to liquidate a bona fide debt.

Section 8. Suspension of license to sell. Upon verified complaint by a buyer of a subdivision lot or a condominium unit in any interested party, the Authority may, in its discretion, immediately suspend the owner's or dealer's license to sell pending investigation and hearing of the case as provided in Section 13 hereof.

The Authority may motu proprio suspend the license to sell if, in its opinion, any information in the registration statement filed by the owner or dealer is or has become misleading, incorrect, inadequate or incomplete or the sale or offering for a sale of the subdivision or condominium project may work or tend to work a fraud upon prospective buyers.

The suspension order may be lifted if, after notice and hearing, the Authority is convinced that the registration statement is accurate or that any deficiency therein has been corrected or supplemented or that the sale to the public of the subdivision or condominium project will neither be fraudulent not result in fraud. It shall also be lifted upon dismissal of the complaint for lack of legal basis.

Until the final entry of an order of suspension, the suspension of the right to sell the project, though binding upon all persons notified thereof, shall be deemed confidential unless it shall appear that the order of suspension has in the meantime been violated.

Section 9. Revocation of registration certificate and license to sell. The Authority may, motu proprio or upon verified complaint filed by a buyer of a subdivision lot or condominium unit, revoke the registration of any subdivision project or condominium project and the license to sell any subdivision lot or condominium unit in said project by issuing an order to this effect, with his findings in respect thereto, if upon examination into the affairs of the owner or dealer during a hearing as provided for in Section 14 hereof, if shall appear there is satisfactory evidence that the said owner or dealer:

(a) Is insolvent; or

(b) has violated any of the provisions of this Decree or any applicable rule or regulation of the Authority, or any undertaking of his/its performance bond; or

(c) Has been or is engaged or is about to engage in fraudulent transactions; or

(d) Has made any misrepresentation in any prospectus, brochure, circular or other literature about the subdivision project or condominium project that has been distributed to prospective buyers; or

(e) Is of bad business repute; or

(f) Does not conduct his business in accordance with law or sound business principles.

Where the owner or dealer is a partnership or corporation or an unincorporated association, it shall be sufficient cause for cancellation of its registration certificate and its license to sell, if any member of such partnership or any officer or director of such corporation or association has been guilty of any act or omission which would be cause for refusing or revoking the registration of an individual dealer, broker or salesman as provided in Section 11 hereof.

Section 10. Registers of subdivision lots and condominium units. A record of subdivision lots and condominium units shall be kept in the Authority wherein shall be entered all orders of the Authority affecting the condition or status thereof. The registers of subdivision lots and condominium units shall be open to public inspection subject to such reasonable rules as the Authority may prescribe.

Title IIIDEALERS, BROKERS AND SALESMEN

Section 11. Registration of dealers, brokers and salesmen. No real estate dealer, broker or salesman shall engage in the business of selling subdivision lots or condominium units unless he has registered himself with the Authority in accordance with the provisions of this section.

If the Authority shall find that the applicant is of good repute and has complied with the applicable rules of the Authority, including the payment of the prescribed fee, he shall register such applicant as a dealer, broker or salesman upon filing a bond, or other security in lieu thereof, in such sum as may be fixed by the Authority conditioned upon his faithful compliance with the provisions of this Decree: Provided, that the registration of a salesman shall cease upon the termination of his employment with a dealer or broker.

Every registration under this section shall expire on the thirty-first day of December of each year. Renewal of registration for the succeeding year shall be granted upon written application therefor made not less than thirty nor more than sixty days before the first day of the ensuing year and upon payment of the prescribed fee, without the necessity of filing further statements or information, unless specifically required by the Authority. All applications filed beyond said period shall be treated as original applications.

The names and addresses of all persons registered as dealers, brokers, or salesmen shall be recorded in a Register of Brokers, Dealers and Salesmen kept in the Authority which shall be open to public inspection.

Section 12. Revocation of registration as dealers, brokers or salesmen. Registration under the preceding section may be refused or any registration granted thereunder, revoked by the Authority if, after reasonable notice and hearing, it shall determine that such applicant or registrant:

1. Has violated any provision of this Decree or any rule or regulation made hereunder; or

2. Has made a material false statement in his application for registration; or

3. Has been guilty of a fraudulent act in connection with any sale of a subdivision lot or condominium unit; or

4. Has demonstrated his unworthiness to transact the business of dealer, broker, or salesman, as the case may be.

In case of charges against a salesman, notice thereof shall also be given the broker or dealer employing such salesman.

Pending hearing of the case, the Authority shall have the power to order the suspension of the dealer's, broker's, of salesman's registration; provided, that such order shall state the cause for the suspension.

The suspension or revocation of the registration of a dealer or broker shall carry with it all the suspension or revocation of the registrations of all his salesmen.

Title IVPROCEDURE FOR REVOCATION OF REGISTRATION CERTIFICATE

Section 13. Hearing. In the hearing for determining the existence of any ground or grounds for the suspension and/or revocation of registration certificate and license to sell as provided in Section 8 and 9 hereof, the following shall be complied with:

(a) Notice. No such hearing shall proceed unless the respondent is furnished with a copy of the complaint against him or is notified in writing of the purpose of such hearing.

(b) Venue. The hearing may be held before the officer or officers designated by the Authority on the date and place specified in the notice.

(c) Nature of proceeding. The proceedings shall be non-litigious and summary in nature without regard to legal technicalities obtaining in courts of law. The Rules of court shall not apply in said hearing except by analogy or in a suppletory character and whenever practicable and convenient.

(d) Power incidental to the hearing. For the purpose of the hearing or other proceeding under this Decree, the officer or officers designated to hear the complaint shall have the power to administer oaths, subpoena witnesses, conduct ocular inspections, take depositions, and require the production of any book, paper, correspondence, memorandum, or other record which are deemed relevant or material to the inquiry.

Section 14. Contempt.

(a) Direct contempt. The officer or officers designated by the Authority to hear the complaint may summarily adjudge in direct contempt any person guilty of misbehavior in the presence of or so near the said hearing officials as to obstruct or interrupt the proceedings before the same or of refusal to be sworn or to answer as a witness or to subscribe an affidavit or deposition when lawfully required to do so. The person found guilty of direct contempt under this section shall be punished by a fine not exceeding Fifty (P50.00) Pesos or imprisonment not exceeding five (5) days, or both.

(b) Indirect contempt. The officer or officers designated to hear the complaint may also adjudge any person in indirect contempt on grounds and in the manner prescribed in Rule 71 of the Revised Rules of Court.

Section 15. Decision. The case shall be decided within thirty (30) days from the time the same is submitted for decision. The Decision may order the revocation of the registration of the subdivision or condominium project, the suspension, cancellation, or revocation of the license to sell and/or

forfeiture, in whole or in part, of the performance bond mentioned in Section 6 hereof. In case forfeiture of the bond is ordered, the Decision may direct the provincial or city engineer to undertake or cause the construction of roads and of other requirements for the subdivision or condominium as stipulated in the bond, chargeable to the amount forfeited. Such decision shall be immediately executory and shall become final after the lapse of 15 days from the date of receipt of the Decision.

Section 16. Cease and Desist Order. Whenever it shall appear to the Authority that any person is engaged or about to engage in any act or practice which constitutes or will constitute a violation of the provisions of this Decree, or of any rule or regulation thereunder, it may, upon due notice and hearing as provided in Section 13 hereof, issue a cease and desist order to enjoin such act or practices.

Section 17. Registration. All contracts to sell, deeds of sale and other similar instruments relative to the sale or conveyance of the subdivision lots and condominium units, whether or not the purchase price is paid in full, shall be registered by the seller in the Office of the Register of Deeds of the province or city where the property is situated.

Whenever a subdivision plan duly approved in accordance with Section 4 hereof, together with the corresponding owner's duplicate certificate of title, is presented to the Register of Deeds for registration, the Register of Deeds shall register the same in accordance with the provisions of the Land Registration Act, as amended: Provided, however, that it there is a street, passageway or required open space delineated on a complex subdivision plan hereafter approved and as defined in this Decree, the Register of Deeds shall annotate on the new certificate of title covering the street, passageway or open space, a memorandum to the effect that except by way of donation in favor of a city or municipality, no portion of any street, passageway, or open space so delineated on the plan shall be closed or otherwise disposed of by the registered owner without the requisite approval as provided under Section 22 of this Decree.

Section 18. Mortgages. No mortgage on any unit or lot shall be made by the owner or developer without prior written approval of the Authority. Such approval shall not be granted unless it is shown that the proceeds of the mortgage loan shall be used for the development of the condominium or subdivision project and effective measures have been provided to ensure such utilization. The loan value of each lot or unit covered by the mortgage shall be determined and the buyer thereof, if any, shall be notified before the release of the loan. The buyer may, at his option, pay his installment for the lot or unit directly to the mortgagee who shall apply the payments to the corresponding mortgage indebtedness secured by the particular lot or unit being paid for, with a view to enabling said buyer to obtain title over the lot or unit promptly after full payment thereto;

Section 19. Advertisements. Advertisements that may be made by the owner or developer through newspaper, radio, television, leaflets, circulars or any other form about the subdivision or the condominium or its operations or activities must reflect the real facts and must be presented in such manner that will not tend to mislead or deceive the public.

The owner or developer shall answerable and liable for the facilities, improvements, infrastructures or other forms of development represented or promised in brochures, advertisements and other sales propaganda disseminated by the owner or developer or his agents and the same shall form part of the sales warranties enforceable against said owner or developer, jointly and severally. Failure to comply with these warranties shall also be punishable in accordance with the penalties provided for in this Decree.

Section 20. Time of Completion. Every owner or developer shall construct and provide the facilities, improvements, infrastructures and other forms of development, including water supply and lighting

facilities, which are offered and indicated in the approved subdivision or condominium plans, brochures, prospectus, printed matters, letters or in any form of advertisement, within one year from the date of the issuance of the license for the subdivision or condominium project or such other period of time as may be fixed by the Authority.

Section 21. Sales Prior to Decree. In cases of subdivision lots or condominium units sold or disposed of prior to the effectivity of this Decree, it shall be incumbent upon the owner or developer of the subdivision or condominium project to complete compliance with his or its obligations as provided in the preceding section within two years from the date of this Decree unless otherwise extended by the Authority or unless an adequate performance bond is filed in accordance with Section 6 hereof.

Failure of the owner or developer to comply with the obligations under this and the preceding provisions shall constitute a violation punishable under Sections 38 and 39 of this Decree.

Section 22. Alteration of Plans. No owner or developer shall change or alter the roads, open spaces, infrastructures, facilities for public use and/or other form of subdivision development as contained in the approved subdivision plan and/or represented in its advertisements, without the permission of the Authority and the written conformity or consent of the duly organized homeowners association, or in the absence of the latter, by the majority of the lot buyers in the subdivision.

Section 23. Non-Forfeiture of Payments. No installment payment made by a buyer in a subdivision or condominium project for the lot or unit he contracted to buy shall be forfeited in favor of the owner or developer when the buyer, after due notice to the owner or developer, desists from further payment due to the failure of the owner or developer to develop the subdivision or condominium project according to the approved plans and within the time limit for complying with the same. Such buyer may, at his option, be reimbursed the total amount paid including amortization interests but excluding delinquency interests, with interest thereon at the legal rate.

Section 24. Failure to pay installments. The rights of the buyer in the event of this failure to pay the installments due for reasons other than the failure of the owner or developer to develop the project shall be governed by Republic Act No. 6552.

Where the transaction or contract was entered into prior to the effectivity of Republic Act No. 6552 on August 26, 1972, the defaulting buyer shall be entitled to the corresponding refund based on the installments paid after the effectivity of the law in the absence of any provision in the contract to the contrary.

Section 25. Issuance of Title. The owner or developer shall deliver the title of the lot or unit to the buyer upon full payment of the lot or unit. No fee, except those required for the registration of the deed of sale in the Registry of Deeds, shall be collected for the issuance of such title. In the event a mortgage over the lot or unit is outstanding at the time of the issuance of the title to the buyer, the owner or developer shall redeem the mortgage or the corresponding portion thereof within six months from such issuance in order that the title over any fully paid lot or unit may be secured and delivered to the buyer in accordance herewith.

Section 26. Realty Tax. Real estate tax and assessment on a lot or unit shall de paid by the owner or developer without recourse to the buyer for as long as the title has not passed the buyer; Provided, however, that if the buyer has actually taken possession of and occupied the lot or unit, he shall be liable to the owner or developer for such tax and assessment effective the year following such taking of possession and occupancy.

Section 27. Other Charges. No owner or developer shall levy upon any lot or buyer a fee for an alleged community benefit. Fees to finance services for common comfort, security and sanitation may be collected only by a properly organized homeowners association and only with the consent of a majority of the lot or unit buyers actually residing in the subdivision or condominium project.

Section 28. Access to Public Offices in the Subdivisions. No owner or developer shall deny any person free access to any government office or public establishment located within the subdivision or which may be reached only by passing through the subdivision.

Section 29. Right of Way to Public Road. The owner or developer of a subdivision without access to any existing public road or street must secure a right of way to a public road or street and such right of way must be developed and maintained according to the requirement of the government and authorities concerned.

Section 30. Organization of Homeowners Association. The owner or developer of a subdivision project or condominium project shall initiate the organization of a homeowners association among the buyers and residents of the projects for the purpose of promoting and protecting their mutual interest and assist in their community development.

Section 31. Donations of roads and open spaces to local government. The registered owner or developer of the subdivision or condominium project, upon completion of the development of said project may, at his option, convey by way of donation the roads and open spaces found within the project to the city or municipality wherein the project is located. Upon acceptance of the donation by the city or municipality concerned, no portion of the area donated shall thereafter be converted to any other purpose or purposes unless after hearing, the proposed conversion is approved by the Authority.

Section 32. Phases of Subdivision. For purposes of complying with the provisions of this Decree, the owner or developer may divide the development and sale of the subdivision into phases, each phase to cover not less than ten hectares. The requirement imposed by this Decree on the subdivision as a whole shall be deemed imposed on each phase.

Section 33. Nullity of waivers. Any condition, stipulation, or provision in contract of sale whereby any person waives compliance with any provision of this Decree or of any rule or regulation issued thereunder shall be void.

Section 34. Visitorial powers. This Authority, through its duly authorized representative may, at any time, make an examination into the business affairs, administration, and condition of any person, corporation, partnership, cooperative, or association engaged in the business of selling subdivision lots and condominium units. For this purpose, the official authorized so to do shall have the authority to examine under oath the directors, officers, stockholders or members of any corporation, partnership, association, cooperative or other persons associated or connected with the business and to issue subpoena or subpoena duces tecum in relation to any investigation that may arise therefrom.

The Authority may also authorize the Provincial, City or Municipal Engineer, as the case may be, to conduct an ocular inspection of the project to determine whether the development of said project conforms to the standards and specifications prescribed by the government.

The books, papers, letters, and other documents belonging to the person or entities herein mentioned shall be open to inspection by the Authority or its duly authorized representative.

Section 35. Take-over Development. The Authority, may take over or cause the development and completion of the subdivision or condominium project at the expenses of the owner or developer, jointly and severally, in cases where the owner or developer has refused or failed to develop or complete the development of the project as provided for in this Decree.

The Authority may, after such take-over, demand, collect and receive from the buyers the installment payments due on the lots, which shall be utilized for the development of the subdivision.

Section 36. Rules and Regulations. The Authority shall issue the necessary standards, rules and regulations for the effective implementation of the provisions of this Decree. Such standards, rules and regulations shall take effect immediately after their publication three times a week for two consecutive weeks in any newspaper of general circulation.

Section 37. Deputization of law enforcement agencies. The Authority may deputize the Philippine Constabulary or any law enforcement agency in the execution of its final orders, rulings or decisions.

Section 38. Administrative Fines. The Authority may prescribe and impose fines not exceeding ten thousand pesos for violations of the provisions of this Decree or of any rule or regulation thereunder. Fines shall be payable to the Authority and enforceable through writs of execution in accordance with the provisions of the Rules of Court.

Section 39. Penalties. Any person who shall violate any of the provisions of this Decree and/or any rule or regulation that may be issued pursuant to this Decree shall, upon conviction, be punished by a fine of not more than twenty thousand (P20,000.00) pesos and/or imprisonment of not more than ten years: Provided, That in the case of corporations, partnership, cooperatives, or associations, the President, Manager or Administrator or the person who has charge of the administration of the business shall be criminally responsible for any violation of this Decree and/or the rules and regulations promulgated pursuant thereto.

Section 40. Liability of controlling persons. Every person who directly or indirectly controls any person liable under any provision of this Decree or of any rule or regulation issued thereunder shall be liable jointly and severally with and to the same extent as such controlled person unless the controlling person acted in good faith and did not directly or indirectly induce the act or acts constituting the violation or cause of action.

Section 41. Other remedies. The rights and remedies provided in this Decree shall be in addition to any and all other rights and remedies that may be available under existing laws.

Section 42. Repealing clause. All laws, executive orders, rules and regulations or part thereof inconsistent with the provisions of this Decree are hereby repealed or modified accordingly.

Section 43. Effectivity. This Decree shall take effect upon its approval.

Done in the City of Manila, this 12th day of July, in the year of Our Lord, nineteen hundred and seventy-six.

Presidential Decree No. 1185             August 26, 1977Repealed by RA 9514

FIRE CODE OF THE PHILIPPINES

WHEREAS, death and injury to persons and loss and damage to property by fire have reached alarming proportion that the economic and social gains of the society are being continually undermined;

WHEREAS, in order to effect a meaningful reduction of the alarming fire losses, there is a need to develop national consciousness and involvement of all persons in the prevention and suppression of fires;

WHEREAS, fire prevention and suppression require the adoption of uniform fire safety standards, the incorporation of fire safety construction and provision of protective and safety devices in buildings and structures;

WHEREAS, there is an urgent need for an agency primarily responsible for the implementation and coordination of the activities of all sectors of society on fire safety, prevention and suppression;

WHEREAS, in order to effectively implement all efforts to minimize the occurrence of fires and their destructive effects, full financial, equipment and personnel support by the government and the private sector is necessary;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree as part of the law of the land the following:

Section 1. Title. This Decree and the Rules and Regulations for its implementation shall be known as the "Fire Code of the Philippines" and shall hereinafter be referred to as the "Fire Code".

Section 2. Declaration Of Policies. The following are declared policies of the State:

(a) The government, with the cooperation of the private sector, shall develop and promulgate sets of standards and regulations taking into consideration the latest development in fire technology suitable to Philippine conditions;

(b) Fire prevention and fire safety shall be given equal, if not greater emphasis as the suppression or extinguishment of fires. Fire prevention education shall be undertaken continuously involving all sectors of the community;

(c) The Fire Service of the Integrated National Police shall endeavor to respond to all fires before they reach critical and conflagration stages. Towards this end, the organization, administration and operation of the Fire Service shall be improved and developed, its personnel and equipment augmented and effective fire alarm systems set up; and

(d) The Fire Service shall be professionalized. For this purpose, educational institutions shall endeavor to include in their curricula, courses on fire technology and fire protection engineering.

Section 3. Definition Of Terms. As used in this Fire Code, the following words and phrases shall mean and be construed as indicated:

ABATEMENT Any act that would remove or neutralize a fire hazard.

ADMINISTRATOR Any person who acts as agent of the owner and manages the use of a building for him.

BLASTING AGENT Any material or mixture consisting of a fuel and oxidizer used to set off explosives.

CELLULOSE NITRATE OR NITRO CELLULOSE A highly combustible and explosive compound produced by the reaction of nitric acid with a cellulose material.

CELLULOSE NITRATE PLASTIC (PYROXYLIN) Any plastic substance, materials or compound having cellulose nitrate (nitro cellulose) as base.

COMBUSTIBLE, FLAMMABLE OR INFLAMMABLE Descriptive of materials that are easily set on fire.

COMBUSTIBLE FIBER Any readily ignitable and free burning fiber such as cotton, oakum, rags, waste cloth, waste paper, kapok, hay, straw, Spanish moss, excelsior and other similar materials commonly used in commerce.

COMBUSTIBLE LIQUID Any liquid having a flash point at or above 37.8_C (100_F).

CORROSIVE LIQUID Any liquid which causes fire when in contact with organic matter or with certain chemicals.

CURTAIN BOARD A vertical panel of non-combustible or fire resistive materials attached to and extending below the bottom chord of the roof trusses, to divide the underside of the roof into separate compartments so that heat and smoke will be directed upwards to a roof vent.

CRYOGENIC Descriptive of any material which by its nature or as a result of its reaction with other elements produces a rapid drop in temperature of the immediate surroundings.

DAMPER A normally open device installed inside an air duct system which automatically closes to restrict the passage of smoke or fire.

DISTILLATION The process of first raising the temperature in separate the more volatile from the less volatile parts and then cooling and condensing the resulting vapor so as to produce a nearly purified substance.

DUCT SYSTEM A continuous passageway for the transmission of air.

DUST A finely powdered substance which, when mixed with air in the proper proportion and ignited will cause an explosion.

ELECTRICAL ARC An extremely hot luminous bridge formed by passage of an electric current across a space between two conductors or terminals due to the incandescence of the conducting vapor.

EMBER A hot piece or lump that remains after a material has partially burned, and is still oxidizing without the manifestation of flames.

FINISHES Materials used as final coating of a surface for ornamental or protective purposes.

FIRE The active principle of burning, characterized by the heat and light of combustion.

FIRE TRAP A building unsafe in case of fire because it will burn easily or because it lacks adequate exits or fire escapes.

FIRE ALARM Any visual or audible signal produced by a device or system to warm the occupants of the building or fire fighting elements of the presence or danger of fire to enable them to undertake immediate action to save life and property and to suppress the fire.

FIRE DOOR A fire resistive door prescribed for openings in fire separation walls or partitions.

FIRE HAZARD Any condition or act which increases or may cause an increase in the probability of the occurrence of fire, or which may obstruct, delay, hinder or interfere with fire fighting operations and the safeguarding of life and property.

FIRE LANE The portion of a roadway or publicway that should be kept opened and unobstructed at all times for the expedient operation of fire fighting units.

FIRE PROTECTIVE AND FIRE SAFETY DEVICE Any device intended for the protection of buildings or persons to include but not limited to built-in protection system such as sprinklers and other automatic extinguishing system, detectors for heat, smoke and combustion products and other warning system components, personal protective equipment such as fire blankets, helmets, fire suits, gloves and other garments that may be put on or worn by persons to protect themselves during fire.

FIRE SAFETY CONSTRUCTIONS Refers to design and installation of walls, barriers, doors, windows, vents, means of egress, etc. integral to and incorporated into a building or structure in order to minimize danger to life from fire, smoke, fumes or panic before the building is evacuated. These features are also designed to achieve, among others, safe and rapid evacuation of people through means of egress sealed from smoke or fire, the confinement of fire or smoke in the room or floor of origin and delay their spread to other parts of the building by means of smoke sealed and fire resistant doors, walls and floors. It shall also mean to include the treatment of buildings components or contents with flame retardant chemicals.

FLASH POINT The minimum temperature at which any material gives off vapor in sufficient concentration to form an ignitable mixture with air.

FORCING A process where a piece of metal is heated prior to changing its shape or dimensions.

FULMINATE A kind of stable explosive compound which explodes by percussion.

HAZARDOUS OPERATION/PROCESS Any act of manufacturing, fabrication, conversion, etc., that uses or produces materials which are likely to cause fires or explosions.

HORIZONTAL EXIT Passageway from one building to another or through or around a wall in approximately the same floor level.

HOSE BOX A box or cabinet where fire hoses, valves and other equipment are stored and arranged for fire fighting.

HOSE REEL A cylindrical device turning on an axis around which a fire hose is wound and connected.

HYPERGOLIC FUEL A rocket or liquid propellant which consist of combinations of fuels and oxidizers which ignite spontaneously on contact with each other.

INDUSTRIAL BAKING AND DRYING The industrial process of subjecting materials to heat for the purpose of removing solvents or moisture from the same, and/or to fuse certain chemical salts to form a uniform glazing the surface of materials being treated.

JUMPER A piece of metal or an electrical conductor used to bypass a safety device in an electrical system.

OCCUPANCY The purpose for which a building or portion thereof is used or intended to be used.

OCCUPANT Any person actually occupying and using a building or portions thereof by virtue of a lease contract with the owner or administrator or by permission or sufferance of the latter.

ORGANIC PEROXIDE A strong oxidizing organic compound which releases oxygen readily. It causes fire when in contact with combustible materials especially under conditions of high temperature.

OVERLOADING The use of one or more electrical appliances or devices which draw or consume electrical current beyond the designed capacity of the existing electrical system.

OWNER The person who holds the legal right of possession or title to a building or real property.

OXIDIZING MATERIAL A material that readily yields oxygen in quantities sufficient to stimulate or support combustion.

PRESSURIZED OR FORCED DRAFT BURNING EQUIPMENT Type or burner where the fuel is subjected to pressure prior to discharge into the combustion chamber and/or which includes fans or other provisions for the introduction of air at above normal atmosphere pressure into the same combustion chamber.

PUBLIC ASSEMBLY BUILDING Any building or structure where fifty (50) or more people congregate, gather, or assemble for any purpose.

PUBLIC WAY Any street, alley or other strip of land unobstructed from the ground to the sky, deeded, dedicated or otherwise permanently appropriated for public use.

PYROPHORIC Descriptive of any substance that ignites spontaneously when exposed to air.

REFINING A process where impurities and/or deleterious materials are removed from a mixture in order to produce a pure element of compound. It shall also refer to partial distillation and electrolysis.

SELF-CLOSING DOORS Automatic closing doors that are designed to confine smoke and heat and delay the spread of fire.

SMELTING Melting or fusing of metallic ores or compounds so as to separate impurities from pure metals.

SPRINKLER SYSTEM An integrated network of hydraulically designed piping installed in a building, structure or area with outlets arranged in a systematic pattern which automatically discharges water when activated by heat or combustion products from a fire.

STANDPIPE SYSTEM A system of vertical pipes in a building to which fire hoses can be attached on each floor, including a system by which water is made available to the outlets as needed.

VESTIBULE A passage hall or antechamber between the outer doors and the interior parts of a house or building.

VERTICAL SHAFT An enclosed vertical space of passage that extends from floor to floor, as well as from the base to the top of the building.

Section 4. Applicability Of The Code. The provisions of the Fire Code shall apply to all persons and all private and public buildings, facilities or structures erected or constructed before and after its effectivity.

Section 5. Grace Period. The owner, administrator or occupant of buildings or structures existing at the time of the effectivity of the Fire Code is given two (2) years to comply with the provisions thereof on fire safety constructions and on protective and warning systems. However, the Director General of the Integrated National Police may prescribe a shorter period depending upon the degree of hazard to be recorded and the cost and extent of the work to be done.

Section 6. Responsibility for the Enforcement of this Code. The Fire Service, under the direct supervision and control of the Director General of the Integrated National Police, hereinafter referred to as the "Director General" shall be responsible for the enforcement of this Code, as well as pertinent provisions of other laws pertaining to fire protection or fire safety. With the approval of the Secretary of National Defense, the Director General is hereby authorized to:

(a) Issue implementing rules and regulations, and prescribe administrative penalties therefore;

(b) Reorganize the Fire Service of the Integrated National Police as may be necessary and appropriate;

(c) Enter into long term agreement, either through public biddings or negotiations to include advance payments therefor, for the acquisition of fire prevention, fire protection and fire fighting equipment, supplies and materials and related technical services necessary for the Fire Service; and

(d) Enter into Memoranda of Agreement with other departments, bureaus, agencies, offices and corporations of the government, as well as private institutions, in order to define areas of corporation and coordination and delineate responsibility on fire prevention education, fire safety, fire prevention, fire suppression and other matters of common concern.

Section 7. Technical Staff. The Director General shall constitute a technical staff of highly qualified persons who are knowledgeable on fire prevention, fire safety, and fire suppression. They may be drawn not only from the organic members of the Integrated National Police and other government offices and agencies, but also from other sources. In the latter case, they will either be appointed into the service or hired as consultants in accordance with law. The technical staff shall study, review and evaluate latest developments and standards on fire technology; prepare plans/programs on fire safety, prevention and suppression and evaluate implementation thereof; develop programs on the professionalization of the fire service; coordinate with appropriate government and private institutions for the offering of college courses on fire technology and fire protection engineering; propose amendments to the Fire Code; advise the Director General on any matter brought to his attention; and perform such other functions as directed on any matter brought to his attention and perform such other functions as directed by higher authorities.

Section 8. Inspections, Safety Measures, Fire Safety, Constructions, and Protective and/or Warning Systems. As may be defined and provided in the Rules and Regulations, owners, administrators or occupants of buildings, structures and their premises or facilities and other responsible persons shall be required to comply with the following, as may be appropriate:

a. Inspection Requirement A fire safety inspection shall be conducted by the Director General or his duly authorized representative as prerequisite to the grants of permits and/or licenses by local governments and other government agencies concerned, for the:

(1) Use or occupancy of buildings, structures, facilities or their premises including the installation or fire protection and fire safety equipment, and electrical system in any building structure or facility;

(2) Storage, handling and/or use of explosives or of combustible, flammable, toxic and other hazardous materials;

b. Safety Measures for Hazardous Materials Fire safety measures shall be required for the manufacture, storage, handling and/or use of hazardous materials involving:

(1) Cellulose nitrate plastic of any kind;

(2) Combustible fibers;

(3) Cellular materials such as foam, rubber, sponge rubber and plastic foam;

(4) Flammable and combustible liquids or gases of any classification;

(5) Flammable paints, varnishes, stains and organic coatings;

(6) High-piled or widely spread combustible stock;

(7) Metallic magnesium in any form;

(8) Corrosive liquids, oxidizing materials, organic peroxide, nitromethane, ammonium nitrate, or any amount of highly toxic, pyrophoric, hypergolic, or cryogenic materials or poisonous gases as well as material compounds which when exposed to heat or flame become a fire conductor, or generate excessive smoke or toxic gases;

(9) Blasting agents, explosives and special industrial explosive materials, blasting caps, black powder, liquid nitro-glycerine, dynamite, nitro cellulose, fulminates of any kind, and plastic explosives containing ammonium salt or chlorate;

(10) Fireworks materials of any kind or form;

(11) Matches in commercial quantities;

(12) Hot ashes, live coals and embers;

(13) Mineral, vegetable or animal oils and other derivatives/by products;

(14) Combustible waste materials for recycling or resale;

(15) Explosive dusts and vapors; and

(16) Agriculture, forest, marine or mineral products which may undergo spontaneous combustion.

c. Safety measures for hazardous operation/processes Fire Safety measures shall be required for the following hazardous operation/processes:

(1) Welding or soldering;

(2) Industrial baking and drying;

(3) Waste disposal;

(4) Pressurized/forced-draft burning equipment;

(5) Smelting and forging;

(6) Motion picture projection using electrical arc lamps;

(7) Refining, distillation and solvent extraction; and

(8) Such other operations or processes as may hereafter be prescribed in the Rules and Regulations.

d. Provision on Fire Safety Construction, Protective and Warning System Owners, occupants or administrator or buildings, structures and their premises or facilities, except such other

buildings or structures as may be exempted in the rules and regulations to be promulgated under Section 6 hereof, shall incorporate and provide therein fire safety construction, protective and warning system, and shall develop and implement fire safety programs, to wit:

(1) Fire protection features such as sprinkler systems, hose boxes, hose reels or standpipe systems and other fire fighting equipment;

(2) Fire Alarm systems;

(3) Fire walls to separate adjoining buildings, or warehouses and storage areas from other occupancies in the same building;

(4) Provisions for confining the fire at its source such as fire resistive floors and walls extending up to the next floor slab or roof, curtain boards and other fire containing or stopping components;

(5) Termination of all exits in an area affording safe passage to a public way or safe dispersal area;

(6) Stairway, vertical shafts, horizontal exits and other meals of egress sealed from smoke and heat;

(7) A fire exit plan for each floor of the building showing the routes from each other room to appropriate exits, displayed prominently on the door of such room;

(8) Self-closing fire resistive doors leading to corridors;

(9) Fire dampers in centralized air-conditioning ducts;

(10) Roof vents for use by fire fighters; and

(11) Properly marked and lighted exits with provision for emergency lights to adequately illuminate exit ways in case of power failure.

Section 9. Prohibited Acts. The following are declared as prohibited act and omission.

(a) Obstructing or blocking the exit ways or across to buildings clearly marked for fire safety purposes, such as but not limited to aisles in interior rooms, any part of stairways, hallways, corridors, vestibules, balconies or bridges leading to a stairway or exit of any kind, or tolerating or allowing said violations;

(b) Constructing gates, entrances and walkways to buildings components and yards which obstruct the orderly and easy passage of fire fighting vehicles and equipment;

(c) Prevention, interference or obstruction of any operation of the Fire Service, or of duly organized and authorized fire brigades;

(d) Obstructing designated fire lanes or access to fire hydrants;

(e) Overcrowding or admission of persons beyond the authorized capacity in movie houses, theaters, coliseums, auditoriums or other public assembly buildings, except in other assembly areas on the ground floor with open sides or open doors sufficient to provide safe exits;

(f) Locking fire exits during period when people are inside the building;

(g) Prevention or obstruction of the automatic closure of fire doors or smoke partitions or dampers;

(h) Use of fire protective of fire fighting equipment of the Fire Service other than for fire fighting except in other emergencies where their use are justified;

(i) Giving false or malicious fire alarms;

(j) Smoking in prohibited areas as may be determined by Fire Service, or throwing of cigars, cigarettes, burning objects in places which may start or cause fire;

(k) Abandoning or leaving a building or structure by the occupant or owner without appropriate safety measures;

(l) Removing. destroying, tampering or obliterating any authorized mark, seal, sign or tag posted or required by the Fire Service for fire safety in any building, structure or processing equipment; and

(m) Use of jumpers or tampering with electrical wiring or overloading the electrical system beyond its designated capacity or such other practices that would tend to undermine the fire safety features of the electrical system.

Section 10. Abatement of Fire Hazard. Fire hazards shall be abated immediately. For this purpose, the Director General or his duly authorized representative may issue order for such abatement. If the owner, administrator or occupant of buildings, structure and their premises or facilities does not abate the same within the period fixed in said order, the occupancy permit or permit to operate shall be canceled. Any building or structure declared as a firetrap or is causing clear and present fire danger to adjoining establishments and habitations shall be declared a public nuisance, as defined in the Civil Code of the Philippines. If the assessed value of the building or structure is not more than twenty thousand (P20,000.00) pesos, the owner, administrator or occupant thereof shall abate the hazard within thirty (30 days or if the assessed value is more than twenty thousand (P20,000.00) pesos, within sixty (60) days from receipt of the order declaring said building or structure a public nuisance; otherwise, the Director General or his duly authorized representative shall forthwith cause its summary abatement. Summary abatement as used herein shall mean all corrective measures undertaken to abate hazards which shall include but not limited to remodeling, repairing, strengthening, reconstructing, removal and demolition, either partial or total, of the building or structure. The expenses incurred by the government for such summary abatement shall be borne by the owner, administrator or occupant. These expenses shall constitute a prior lien upon such property.

Section 11. Enforcement of The Lien. If the owner, administrator or occupant fails to reimburse the government of the expenses incurred in the summary abatement within ninety (90) days from the completion of such abatement, the building or structure shall be sold at public auction in accordance with existing laws and rules. No property subject of lien under Section 10 hereof, may be sold at a

price lower than the abatement expenses incurred by the government. The property shall be forfeited in favor of the government if the highest bid is not at least equal to the abatement expenses.

Section 12. Penalties.

(a) ADMINISTRATIVE FINE Any person who violates any provision of the Fire Code or any of the rules and regulations promulgated under Section 6 hereof shall be penalized by an administrative fine of not exceeding twelve thousand (P12,000.00) pesos or in the proper case, by stoppage of operations or by closure of such buildings, structures and their premises or facilities which do not comply with the requirements or by both such administrative fine and closure/stoppage of operation to be imposed by the Director General, Provided, That the payment of the fine, stoppage of operations and/or closure of such buildings, structures, and their premises or facilities shall not absolve the violator from correcting the deficiency or abating the fire hazard. The decision of the Director General, under this subsection, may be appealed to the Secretary of National Defense, within fifteen (15) days from the date of receipt of the order imposing the administrative fine, stopping the operations and/or closure. The decision of the Secretary of National Defense shall be final and executory.

(b) PUNITIVE In case of willful failure to correct the deficiency or abate the fire hazard as provided in the preceding subsection, the violator shall, upon conviction, be punished by imprisonment of not less than six (6) months nor more than six (6) years, or by a fine of not more than twenty thousand (P20,000.00) pesos or both such fine and imprisonment; Provided, however, that in case of a corporation, firm, partnership or association, the fine and/or imprisonment shall be imposed upon its officials responsible for such violation, and in case the guilty party is an alien, in addition to the penalties herein prescribed, he shall immediately be deported; Provided, finally, that were the violation is attended by loss of life and/or damage to property, the violator shall be proceeded against under the applicable provisions of the Revised Penal Code.

Section 13. Appropriation and Sources of Income.

(a) To support the manpower, infrastructure and equipment needs of the Fire Service of the Integrated National Police, the sum of one hundred million (P100,000,000.00) pesos is hereby appropriated. Thereafter, the same of such amount as may be necessary to attain the objectives of the Fire Code shall be appropriated and included in the annual appropriation of the Integrated National Police for the next ten (10) years.

(b) To partially provide for the funding of the Fire Service the following taxes and fees which shall accrue to the General Fund of the National Government, are hereby imposed:

(1) Fees to be charged for the issuance of certificates, permits and licenses as provided for in Section 8 (a) hereof;

(2) One-tenth of one per centum (0.1%) of the verified estimated value of buildings or structures to be erected, from the owner thereof, but not to exceed fifty thousand (P50,000.00) pesos, one half to be paid prior to the issuance of the building permit, and the balance, after final inspection and prior to the issuance of the use and occupancy permit;

(3) One-hundredth of one per centum (0.10%) of the assessed value of buildings or structures annually payable upon payment of the real estate tax, except on structures used as single family dwellings;

(4) Two per centum (2%) of all premiums, excluding re-insurance premiums for the sale of fire, earthquake and explosion hazard insurance collected by companies, persons or agents licensed to sell such insurances in the Philippines;

(5) Two per centum (2%) of gross sales of companies, persons or agents selling fire fighting equipment, appliances or devices, including hazard detection and warning systems; and

(6) Two per centum (2%) of the service fees received from fire, earthquake, and explosion hazard preinsurance surveys and post loss service of insurance adjustment companies doing business in the Philippines directly through agents.

Section 14. Collection of Taxes, Fees and Fines. All taxes, fees and fines provided in Section 13 hereof, shall be collected by the City or Municipal Treasurer concerned for remittance to the National Treasury.

Section 15. Separability Clause. If any provision of this Code or the application of such provisions to any person or circumstance is declared unconstitutional, the remainder of the Code or the application of such provision to other persons or circumstances shall not be affected by such declaration.

Section 16. Repealing Clause. Provisions of Presidential Decree No. 442, otherwise known as the Labor Code of the Philippines, as amended and Presidential Decree No. 1096, otherwise known as the National Building Code and other laws, decrees, orders or regulations in conflict or inconsistent with the provisions of this Fire Code are hereby repealed or modified accordingly.

Section 17. Effectivity. This Fire Code and its Rules and Regulations shall take effect thirty (30) days after their publication in newspapers of general circulation.

Done in the City of Manila, this 26th day of August, in the year of Our Lord, nineteen hundred and seventy-seven.

fourteenth CongressSecond Regular Session

Begun and held in Metro Manila, on Monday, the twenty-eight day of July, two thousand eight.

Republic Act No. 9514             December 19, 2008Repealed PD 1185

AN ACT ESTABLISHING A COMPREHENSIVE FIRE CODE OF THE PHILIPPINES, REPEALING PRESIDENTIAL DECREE NO. 1185 AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::

Section 1. This Act shall be known as the "Revised Fire Code of the Philippines of 2008".

Section 2. It is the policy of the State to ensure public safety and promote economic development through the prevention and suppression of all kinds of destructive fires and promote the professionalization of the fire service as a profession. Towards this end, the State shall enforce all laws, rules and regulations to ensure adherence to standard fire prevention and safety measures, and promote accountability for fire safety in the fire protection service and prevention service.

Section 3. Definition of Terms. - As used in this Fire Code, the following words and phrases shall mean and be construed as indicated:

Abatement - Any act that would remove or neutralize a fire hazard.

Administrator - Any person who acts as agent of the owner and manages the use of a building for him.

Blasting Agent - Any material or mixture consisting of a fuel and oxidizer used to set off explosives.

Cellulose Nitrate Or Nitro Cellulose - A highly combustible and explosive compound produced by the reaction of nitric acid with a cellulose material.

Cellulose Nitrate Plastic (Pyroxylin) - Any plastic substance, materials or compound having cellulose nitrate (nitro cellulose) as base.

Combustible, Flammable or Inflammable - Descriptive of materials that are easily set on fire.

Combustible Fiber - Any readily ignitable and free burning fiber such as cotton, oakum, rags, waste cloth, waste paper, kapok, hay, straw, Spanish moss, excelsior and other similar materials commonly used in commerce.

Combustible Liquid - Any liquid having a flash point at or above 37.8_C (100_F).

Corrosive Liquid - Any liquid which causes fire when in contact with organic matter or with certain chemicals.

Curtain Board - A vertical panel of non-combustible or fire resistive materials attached to and extending below the bottom chord of the roof trusses, to divide the underside of the roof into separate compartments so that heat and smoke will be directed upwards to a roof vent.

Cryogenic - Descriptive of any material which by its nature or as a result of its reaction with other elements produces a rapid drop in temperature of the immediate surroundings.

Damper - A normally open device installed inside an air duct system which automatically closes to restrict the passage of smoke or fire.

Distillation - The process of first raising the temperature in separate the more volatile from the less volatile parts and then cooling and condensing the resulting vapor so as to produce a nearly purified substance.

Duct System - A continuous passageway for the transmission of air.

Dust - A finely powdered substance which, when mixed with air in the proper proportion and ignited will cause an explosion.

Electrical Arc - An extremely hot luminous bridge formed by passage of an electric current across a space between two conductors or terminals due to the incandescence of the conducting vapor.

Ember - A hot piece or lump that remains after a material has partially burned, and is still oxidizing without the manifestation of flames.

Finishes - Materials used as final coating of a surface for ornamental or protective purposes.

Fire - The active principle of burning, characterized by the heat and light of combustion.

Fire Trap - A building unsafe in case of fire because it will burn easily or because it lacks adequate exits or fire escapes.

Fire Alarm - Any visual or audible signal produced by a device or system to warm the occupants of the building or fire fighting elements of the presence or danger of fire to enable them to undertake immediate action to save life and property and to suppress the fire.

Fire Door - A fire resistive door prescribed for openings in fire separation walls or partitions.

Fire Hazard - Any condition or act which increases or may cause an increase in the probability of the occurrence of fire, or which may obstruct, delay, hinder or interfere with fire fighting operations and the safeguarding of life and property.

Fire Lane - The portion of a roadway or publicway that should be kept opened and unobstructed at all times for the expedient operation of fire fighting units.

Fire Protective And Fire Safety Device - Any device intended for the protection of buildings or persons to include but not limited to built-in protection system such as sprinklers and other automatic extinguishing system, detectors for heat, smoke and combustion products and other warning system components, personal protective equipment such as fire blankets, helmets, fire suits, gloves and other garments that may be put on or worn by persons to protect themselves during fire.

Fire Safety Constructions - Refers to design and installation of walls, barriers, doors, windows, vents, means of egress, etc. integral to and incorporated into a building or structure in order to minimize danger to life from fire, smoke, fumes or panic before the building is evacuated. These features are also designed to achieve, among others, safe and rapid evacuation of people through means of egress sealed from smoke or fire, the confinement of fire or smoke in the room or floor of origin and delay their spread to other parts of the building by means of smoke sealed and fire resistant doors, walls and floors. It shall also mean to include the treatment of buildings components or contents with flame retardant chemicals.

Flash Point - The minimum temperature at which any material gives off vapor in sufficient concentration to form an ignitable mixture with air.

Forcing -A process where a piece of metal is heated prior to changing its shape or dimensions.

Fulminate - A kind of stable explosive compound which explodes by percussion.

Hazardous Operation/Process - Any act of manufacturing, fabrication, conversion, etc., that uses or produces materials which are likely to cause fires or explosions.

Horizontal Exit - Passageway from one building to another or through or around a wall in approximately the same floor level.

Hose Box - A box or cabinet where fire hoses, valves and other equipment are stored and arranged for fire fighting.

Hose Reel - A cylindrical device turning on an axis around which a fire hose is wound and connected.

Hypergolic Fuel - A rocket or liquid propellant which consist of combinations of fuels and oxidizers which ignite spontaneously on contact with each other.

Industrial Baking And Drying - The industrial process of subjecting materials to heat for the purpose of removing solvents or moisture from the same, and/or to fuse certain chemical salts to form a uniform glazing the surface of materials being treated.

Jumper - A piece of metal or an electrical conductor used to bypass a safety device in an electrical system.

Occupancy - The purpose for which a building or portion thereof is used or intended to be used.

Occupant - Any person actually occupying and using a building or portions thereof by virtue of a lease contract with the owner or administrator or by permission or sufferance of the latter.

Organic Peroxide - A strong oxidizing organic compound which releases oxygen readily. It causes fire when in contact with combustible materials especially under conditions of high temperature.

Overloading - The use of one or more electrical appliances or devices which draw or consume electrical current beyond the designed capacity of the existing electrical system.

Owner - The person who holds the legal right of possession or title to a building or real property.

Oxidizing Material - A material that readily yields oxygen in quantities sufficient to stimulate or support combustion.

Pressurized Or Forced Draft Burning Equipment - Type or burner where the fuel is subjected to pressure prior to discharge into the combustion chamber and/or which includes fans or other provisions for the introduction of air at above normal atmosphere pressure into the same combustion chamber.

Public Assembly Building - Any building or structure where fifty (50) or more people congregate, gather, or assemble for any purpose.

Public Way - Any street, alley or other strip of land unobstructed from the ground to the sky, deeded, dedicated or otherwise permanently appropriated for public use.

Pyrophoric - Descriptive of any substance that ignites spontaneously when exposed to air.

Refining - A process where impurities and/or deleterious materials are removed from a mixture in order to produce a pure element of compound. It shall also refer to partial distillation and electrolysis.

Self-Closing Doors - Automatic closing doors that are designed to confine smoke and heat and delay the spread of fire.

Smelting - Melting or fusing of metallic ores or compounds so as to separate impurities from pure metals.

Sprinkler System - An integrated network of hydraulically designed piping installed in a building, structure or area with outlets arranged in a systematic pattern which automatically discharges water when activated by heat or combustion products from a fire.

Standpipe System - A system of vertical pipes in a building to which fire hoses can be attached on each floor, including a system by which water is made available to the outlets as needed.

Vestibule - A passage hall or antechamber between the outer doors and the interior parts of a house or building.

Vertical Shaft - An enclosed vertical space of passage that extends from floor to floor, as well as from the base to the top of the building.

Section 4. Applicability of The Code. - The provisions of the Fire Code shall apply to all persons and all private and public buildings, facilities or structures erected or constructed before and after its effectivity.

Section 5. Responsibility for the Enforcement of this Code. - This Code shall be administered and enforced by the Bureau of Fire Protection (BFP), under the direct supervision and control of the Chief of the Bureau of Fire Protection, through the hierarchy of organization as provided for in Chapter VI of Republic Act No. 6975. with the approval of the Secretary of the Department of the Interior and Local Government (DILG), the BFP, is hereby authorized to:

a. Issue implementing rules and regulations, and prescribe standards, schedules of fees/fire service charges and administrative penalties therefore as provided in the pertinent provisions of this Code;

b. Reorganize the BFP as may be necessary and appropriate;

c. Support and assist fire volunteers, practitioners and fire volunteer organizations in the country who shall undergo mandatory fire suppression, inspection, rescue, emergency medical services and related emergency response trainings and competency evaluations to be conducted by the BFP. In the case of the Fire practitiones, they shall undergo mandatory continuous professional education and competency evaluation of their expertise, knowledge and skills in the area of fire science, engineering and technology to be conducted by the BFP;

The BFP may enter into external party agreements for the conduct of training, education and evaluation of fire volunteers, practitioners and fire volunteer organizations, which shall be under the full control and supervision of the BFP: Provided, however, That during firefighting operations, fire volunteer organizations shall be under the direct operational control of the fire ground commanders of the BFP;

d. Enter into long term agreement, either through public biddings or negotiations in accordance with the provisions of Republic Act No. 9184, otherwise known as the Government Procurement Reform Act of 2003, for the acquisition of fire prevention, fire protection and fire fighting investigation, rescue, paramedics, hazardous material handling equipment, supplies, materials and related technical services necessary for the fire services;

e. Enter into Memoranda of Agreement with other departments, bureaus, agencies, offices and corporations of the government, as well as private institutions, in order to define areas of cooperation and coordination and delineate responsibility on fire prevention education, fire safety, fire prevention, fire suppression and other matters of common concern;

f. Call on the police, other law enforcement agencies, and local government assistance to render necessary assistance in the enforcement of this Code;

g. Designate a fire safety inspector through his/her duly authorized representative, who shall conduct an inspection of every building or structure within his area of responsibility at least once a year and every time the owner, administrator or occupant shall renew his/her business permit or permit to operate;

No occupancy permit, business or permit to operate shall be issued without securing a Fire Safety Inspection Certification (FSIC) from the Chief, BFP, or his/her duly authorized representative;

h. Inspect at reasonable time, any building, structure, installation or premises for dangerous or hazardous conditions or materials as set forth in this Code, provided that in case of single family dwelling, an inspection must be upon the consent of the occupant or upon lawful order from the proper court. The Chief, BFP or his/her duly authorized representative shall order the owner/occupant to remove hazardous materials and/or stop hazardous operation/process in accordance with the standards set by this Code or its implementing rules or regulations or other pertinent laws;

i. Where conditions exist and are deemed hazardous to life and property, to order the owner/occupant of any building or structure to summarily abate such hazardous conditions;

j. Require the building owner/occupant to submit plans and specifications, and other pertinent documents of said building to ensure compliance with applicable codes and standards; and

k. Issue a written notice to the owner and/or contractor to stop work on portion of any work due to absence, or in violation of approved plans and specifications, permit and/or clearance or certification as approved by the Chief, BFP or his/her duly authorized representative. The notice shall state the nature of the violation and no work shall be continued on that portion until the violation has been corrected.

Section 6. Technical Staff. - The Chief, BFP shall constitute a technical staff of highly qualified persons who are knowledgeable on fire prevention, fire safety, and fire suppression. They may be drawn not only from the organic members of the BFP and other government offices and agencies, but also from other sources. In the latter case, they will either be appointed into the service or hired as consultants in accordance with law. The technical staff shall study, review and evaluate latest developments and standards on fire technology; prepare plans/programs on fire safety, prevention and suppression and evaluate implementation thereof; develop programs on the professionalization of the fire service; coordinate with appropriate government and private institutions for the offering of college courses on fire technology and fire protection engineering; propose amendments to the Fire Code; advise the Chief, BFP on any matter brought to his attention; and perform such other functions as directed on any matter brought to his attention and perform such other functions as directed by higher authorities.

Section 7. Inspections, Safety Measures, Fire Safety, Constructions, and Protective and/or Warning Systems. - As may be defined and provided in the Rules and Regulations, owners, administrators or occupants of buildings, structures and their premises or facilities and other responsible persons shall be required to comply with the following, as may be appropriate:

a. Inspection Requirement - A fire safety inspection shall be conducted by the Chief, BFP or his duly authorized representative as prerequisite to the grants of permits and/or licenses by local governments and other government agencies concerned, for the:

(1) Use or occupancy of buildings, structures, facilities or their premises including the installation or fire protection and fire safety equipment, and electrical system in any building structure or facility; and

(2) Storage, handling and/or use of explosives or of combustible, flammable, toxic and other hazardous materials;

b. Safety Measures for Hazardous Materials - Fire safety measures shall be required for the manufacture, storage, handling and/or use of hazardous materials involving:

(1) cellulose nitrate plastic of any kind;

(2) combustible fibers;

(3) cellular materials such as foam, rubber, sponge rubber and plastic foam;

(4) flammable and combustible liquids or gases of any classification;

(5) flammable paints, varnishes, stains and organic coatings;

(6) high-piled or widely spread combustible stock;

(7) metallic magnesium in any form;

(8) corrosive liquids, oxidizing materials, organic peroxide, nitromethane, ammonium nitrate, or any amount of highly toxic, pyrophoric, hypergolic, or cryogenic materials or poisonous gases as well as material compounds which when exposed to heat or flame become a fire conductor, or generate excessive smoke or toxic gases;

(9) blasting agents, explosives and special industrial explosive materials, blasting caps, black powder, liquid nitro-glycerine, dynamite, nitro cellulose, fulminates of any kind, and plastic explosives containing ammonium salt or chlorate;

(10) fireworks materials of any kind or form;

(11) matches in commercial quantities;

(12) hot ashes, live coals and embers;

(13) mineral, vegetable or animal oils and other derivatives/by products;

(14) combustible waste materials for recycling or resale;

(15) explosive dusts and vapors; and

(16) agriculture, forest, marine or mineral products which may undergo spontaneous combustion.

(17) any other substance with potential to cause harm to persons, property or the environment because of one or more of the following: a) The chemical properties of the substance; b) The physical properties of the substance; c) The biological properties of the substance. Without limiting the definition of hazardous material, all dangerous goods, combustible liquids and chemicals are hazardous materials.

c. Safety Measures for Hazardous Operation/Processes - Fire Safety measures shall be required for the following hazardous operation/processes:

(1) welding or soldering;

(2) industrial baking and drying;

(3) waste disposal;

(4) pressurized/forced-draft burning equipment;

(5) smelting and forging;

(6) motion picture projection using electrical arc lamps;

(7) refining, distillation and solvent extraction; and

(8) such other operations or processes as may hereafter be prescribed in the Rules and Regulations.

d. Provision on Fire Safety Construction, Protective and Warning System - Owners, occupants or administrator or buildings, structures and their premises or facilities, except such other buildings or structures as may be exempted in the rules and regulations to be promulgated under Section 5 hereof, shall incorporate and provide therein fire safety construction, protective and warning system, and shall develop and implement fire safety programs, to wit:

(1) Fire protection features such as sprinkler systems, hose boxes, hose reels or standpipe systems and other fire fighting equipment;

(2) Fire Alarm systems;

(3) Fire walls to separate adjoining buildings, or warehouses and storage areas from other occupancies in the same building;

(4) Provisions for confining the fire at its source such as fire resistive floors and walls extending up to the next floor slab or roof, curtain boards and other fire containing or stopping components;

(5) Termination of all exits in an area affording safe passage to a public way or safe dispersal area;

(6) Stairway, vertical shafts, horizontal exits and other means of egress sealed from smoke and heat;

(7) A fire exit plan for each floor of the building showing the routes from each other room to appropriate exits, displayed prominently on the door of such room;

(8) Self-closing fire resistive doors leading to corridors;

(9) Fire dampers in centralized airconditioning ducts;

(10) Roof vents for use by fire fighters; and

(11) Properly marked and lighted exits with provision for emergency lights to adequately illuminate exit ways in case of power failure.

Section 8. Prohibited Acts. - The following are declared as prohibited act and omission.

(a) Obstructing or blocking the exit ways or across to buildings clearly marked for fire safety purposes, such as but not limited to aisles in interior rooms, any part of stairways, hallways, corridors, vestibules, balconies or bridges leading to a stairway or exit of any kind, or tolerating or allowing said violations;

(b) Constructing gates, entrances and walkways to buildings components and yards which obstruct the orderly and easy passage of fire fighting vehicles and equipment;

(c) Prevention, interference or obstruction of any operation of the Fire Service, or of duly organized and authorized fire brigades;

(d) Obstructing designated fire lanes or access to fire hydrants;

(e) Overcrowding or admission of persons beyond the authorized capacity in movie houses, theaters, coliseums, auditoriums or other public assembly buildings, except in other assembly areas on the ground floor with open sides or open doors sufficient to provide safe exits;

(f) Locking fire exits during period when people are inside the building;

(g) Prevention or obstruction of the automatic closure of fire doors or smoke partitions or dampers;

(h) Use of fire protective of fire fighting equipment of the fire service other than for fire fighting except in other emergencies where their use are justified;

(i) Giving false or malicious fire alarms;

(j) Smoking in prohibited areas as may be determined by fire service, or throwing of cigars, cigarettes, burning objects in places which may start or cause fire;

(k) Abandoning or leaving a building or structure by the occupant or owner without appropriate safety measures;

(l) Removing. destroying, tampering or obliterating any authorized mark, seal, sign or tag posted or required by the fire service for fire safety in any building, structure or processing equipment; and

(m) Use of jumpers or tampering with electrical wiring or overloading the electrical system beyond its designated capacity or such other practices that would tend to undermine the fire safety features of the electrical system.

Section 9. Violation, Penalties and Abatement of Fire Hazard. - Fire hazards shall be abated immediately. The Chief, BFP or his/her duly authorized representative, upon the report that a violation of this Code or other pertinent laws, rules and regulations is being committed, shall issue notice/order to comply to the owner, administrator, occupant or other person responsible for the condition of the building or structure, indicating among other things, the period within which compliance shall be effected, which shall be within ten (10) to fifteen (15) days after the receipt of the notice/order, depending on the reasonableness to adequately comply with the same.

If, after the lapse of the aforesaid period, the owner, administrator, occupant or other responsible person failed to comply, the Chief, BFP or his/her authorized representative shall put up a sign in front of the building or structure that it is fire hazard. Specifically, the notice shall bear the words "WARNING: THIS BUILDING/STRUCTURE IS A FIRE HAZARD", which shall remain posted until such time that the owner, administrator, occupant or other person responsible for the condition of the building, structure and their premises or facilities abate the same, but such period shall not exceed fifteen (15) days from the lapse of the initial period given in the notice/order to comply.

Finally, with the failure of the owner, administrator, occupant or other person responsible for the condition of the building, structure and their premises or facilities to comply within the period specified above, the Chief, BFP may issue order for such abatement. If the owner, administrator or occupant of buildings, structure and their premises or facilities does not abate the same within the period fixed in said order, the building, structure, premises or facilities shall be ordered closed by the Chief, BFP or his/her duly authorized representative notwithstanding any permit clearance or certificate earlier issued by the local authorities.

Any building or structure assessed and declared by the chief, BFP or his/her duly authorized representative as a firetrap on account of the gravity or palpability of the violation or is causing clear and present imminent fire danger to adjoining establishments and habitations shall be declared a public nuisance, as defined in the Civil Code of the Philippines in a notice to be issued to the owner, administrator, occupant or other person responsible for the condition of the building, structure and their premises or facilities. If the assessed value of the nuisance or the amount to be spent in abating the same is not more than One hundred thousand pesos (P100,000.00), the owner, administrator or occupant thereof shall abate the hazard within fifteen (15) days, or if the assessed value is more than One hundred thousand pesos (P100,000.00), within thirty (30) days from receipt of the order declaring said building or structure a public nuisance; otherwise, the Chief, BFP or his/her duly authorized representative shall forthwith cause its summary abatement. failure to comply within five (5) days from the receipt of the notice shall cause the Chief, BFP or his/her duly authorized representative to put up a sign in front of the building or structure, at or near the entrance of such premises, notifying the public that such building or structure is a "FIRETRAP", which shall remain until the owner, administrator, occupant or other person responsible for the condition of the building, structure and their premises or facilities abate the same within the specified period.

Summary abatement as used herein shall mean all corrective measures undertaken to abate hazards which shall include, but not limited to remodeling, repairing, strengthening, reconstructing, removal and demolition, either partial or total, of the building or structure. The expenses incurred by

the government for such summary abatement shall be borne by the owner, administrator or occupant. These expenses shall constitute a prior lien upon such property.

Section 10. Enforcement of The Lien. - If the owner, administrator or occupant fails to reimburse the government of the expenses incurred in the summary abatement within ninety (90) days from the completion of such abatement, the building or structure shall be sold at public auction in accordance with existing laws and rules. No property subject of lien under Section 9 hereof, may be sold at a price lower than the abatement expenses incurred by the government. The property shall be forfeited in favor of the government if the highest bid is not at least equal to the abatement expenses.

Section 11. Penalties. -

1. Against the private individual:

a) Administrative fine - Any person who violates any provision of the Fire Code or any of the rules and regulations promulgated under this Act shall be penalized by an administrative fine of not exceeding Fifty thousand (P50,000.00) pesos or in the proper case, by stoppage of operations or by closure of such buildings, structures and their premises or facilities which do not comply with the requirements or by both such administrative fine and closure/stoppage of operation to be imposed by the Chief, BFP.Provided, That the payment of the fine, stoppage of operations and/or closure of such buildings, structures, and their premises or facilities shall not absolve the violator from correcting the deficiency or abating the fire hazard. The decision of the Chief, BFP, under this subsection, may be appealed to the Secretary of the Interior and Local Government. Unless ordered by the Secretary of the Interior and Local Government the appeal shall not stay the execution of the order of the Chief, BFP. The decision of the Secretary of the Interior and Local Government shall be final and executory.

(b) Punitive - In case of willful failure to correct the deficiency or abate the fire hazard as provided in the preceding subsection, the violator shall, upon conviction, be punished by imprisonment of not less than six (6) months nor more than six (6) years, or by a fine of not more than One hundred thousand (P100,000.00) pesos or both such fine and imprisonment; Provided, however, that in case of a corporation, firm, partnership or association, the fine and/or imprisonment shall be imposed upon its officials responsible for such violation, and in case the guilty party is an alien, in addition to the penalties herein prescribed, he shall immediately be deported; Provided, finally, that were the violation is attended by injury, loss of life and/or damage to property, the violator shall be proceeded against under the applicable provisions of the Revised Penal Code.

Any person who, without authority, maliciously removes the sign that a building or structure is a fire hazard/firetrap placed by the authorized person in this Code shall be liable for imprisonment for thirty (30) days or a fine not exceeding One hundred thousand pesos (P100,000.00) or both in the discretion of the court.

Any person, who disobeys the lawful order of the fire ground commander during a firefighting operation shall be penalized with imprisonment of one (1) day to thirty (30) days and a fine of five thousand pesos (P5,000.00).

2. Against the public officer/employee

a) Administrative - The following acts or omissions shall render the public officer/employee in charge of the enforcement of this Code, its implementing rules and regulation and other pertinent laws, administratively liable, and shall be punished by reprimand, suspension or removal in the discretion of the disciplining authority, depending on the gravity of the offense and without prejudice to the provisions of other applicable laws:

(1) Unjustified failure of the public officer/employee to conduct inspection of buildings or structures at least once a year;

(2) Deliberate failure to put up a sign in front of the building or structure within his/her area of responsibility found to be violating this Code, its implementing rules and regulations and other pertinent laws, that the same is a "FIRE HAZARD" or a "FIRETRAP";

(3) Endorsing to the Chief, BFP or his/her duly authorized representative for the certification, or submitting a report that the building or structure complies with the standards set by this Code, its implementing rules or regulations or other pertinent laws when the same is contrary to fact;

(4) Issuance or renewal of occupancy or business permit without the fire safety inspection certificate issued by the Chief, BFP or his/her duly authorized representative;

(5) Failure to cancel the occupancy or business permit after the owner, administrator, occupant or other person responsible for the condition of the building, structure and other premises failed to comply with the notice/order for compliance with the standards set by this Code, its implementing rules and regulations and other pertinent laws, within the specified period;

(6) Failure to abate a public nuisance within fifteen (15) days after the owner, administrator, occupant or other responsible person failed to abate the same within the period contained in the notice to abate;

(7) Abusing his/her authority in the performance of his/her duty through acts of corruption and other unethical practices; or

(8) Other willful impropriety or gross negligence in the performance of his/her duty as provided in this act or its implementing rules and regulations.

b) Punitive - In the case of willful violation involving the abovementioned acts or omissions enumerated under Section 11 subparagraph 2(A) the public officer/employees shall, upon conviction, be punished by imprisonment of not less than six (6) months nor more than six (6) years or by a fine of not more than One hundred thousand (P100,000.00) or both such fine and imprisonment:Provided, That where the violation is attended by injury, loss of life and/or property, the violator shall be proceeded against under the applicable provisions of the Revised Penal Code.

Section 12. Appropriation and Sources of Income. -

(a) To support the manpower, infrastructure and equipment needs of the fire service of the BFP, such amount as may be necessary to attain the objectives of the Fire Code shall be appropriated and included in the annual appropriation of the BFP.

(b) To partially provide for the funding of the fire service the following taxes and fees which shall accrue to the General Fund of the National Government, are hereby imposed:

(1) Fees to be charged for the issuance of certificates, permits and licenses as provided for in Section 7 (a) hereof;

(2) One-tenth of one per centum (0.1%) of the verified estimated value of buildings or structures to be erected, from the owner thereof, but not to exceed fifty thousand (P50,000.00) pesos, one half to be paid prior to the issuance of the building permit, and the balance, after final inspection and prior to the issuance of the use and occupancy permit;

(3) One-hundredth of one per centum (0.10%) of the assessed value of buildings or structures annually payable upon payment of the real estate tax, except on structures used as single family dwellings;

(4) Two per centum (2%) of all premiums, excluding re-insurance premiums for the sale of fire, earthquake and explosion hazard insurance collected by companies, persons or agents licensed to sell such insurances in the Philippines;

(5) Two per centum (2%) of gross sales of companies, persons or agents selling fire fighting equipment, appliances or devices, including hazard detection and warning systems; and

(6) Two per centum (2%) of the service fees received from fire, earthquake, and explosion hazard reinsurance surveys and post loss service of insurance adjustment companies doing business in the Philippines directly through agents.

Section 13. Collection of Taxes, Fees and Fines. - All taxes, fees and fines provided in this Code, shall be collected by the BFP. Provided, That twenty percent (20%) of such collection shall be set aside and retained for use by the city or municipal government concerned, which shall appropriate the same exclusive for the use of the operation and maintenance of its local fire station, including the construction and repair of fire station: Provided,further, That the remaining eighty (80%) shall be remitted to the National Treasury under a trust fund assigned for the modernization of the BFP.

"Sec. 13-A. Assessment of Fire Code Taxes, Fees and Fines. - The assessment of fire code taxes, fees and fines is vested upon the BFP. The BFP shall, subject to the approval of the DILG, prescribe the procedural rules for such purpose.

Sec. 13-B. Collection and Assessment of Local Taxes, Fees and Fines. - The collection and assessment of taxes, fees and fines as prescribed in the Local Government Code, except those contained in this Code, shall be function of the concerned local government units.

Sec. 13-C. Use of Income Generated from the Enforcement of the Fire Code. - The Chief, BFP is authorized, subject to the approval of the Secretary of the Interior and Local Government, to use the income generated under the Fire Code for procurement of fire protection and fire fighting investigation, rescue, paramedics, supplies and materials, and related technical services necessary

for the fire service and the improvement of facilites of the Bureau of Fire Protection and abatement of fire hazards.

The BFP shall determine the optimal number of equipment, including, but not limited to, fire trucks and fire hydrants, required by every local government unit for the proper delivery of fire protection services in its jurisdiction.

In the procurement of fire fighting and investigation supplies and materials, the Bureau of Product Standards of the Department of Trade and Industry shall evaluate, determine and certify if the supply to procured conforms to the product standards fixed by the BFP. For this purpose, the BFP shall submit to the Bureau of Product Standards a detailed set of product standards that must be complied with in the procurement of fire fighting and investigation supplies and materials within six (6) months from the effectivity of this act.

Sec. 13-D. Monitoring the Implementation of the Fire Code and the Amount of the Fees Collected. - The Chief, BFP shall, within six (6) month from the effectivity of this Code, submit to the Secretary of the Interior and Local Government for his/her approval, a management tool or mechanism that would ensure effective monitoring of the enforcement of the Fire Code to include the amount of Fire Code fees collected.

Section 14. Within sixty (60) days from the effectivity of this Act, the Secretary of the Interior and Local Government shall issue the rules and regulations for its effective implementation.

Section 15. Presidential Decree No 1185 is hereby repealed. All laws, presidential decrees, letters of instructions, executive orders, rules and regulations insofar as they are inconsistent with this Act, are hereby repealed or amended as the case may be.

Section 16. In case any provision of this Act or any portion thereof is declared unconstitutional by a competent court, other provisions shall not be affected thereby.

Section 17. This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in two (2) national newspapers of general circulation.

Approved

(Sgd.) PROSPERO C. NOGRALESSpeaker of the House of

Representative

(Sgd.) MANNY VILLARPresident of the Senate

This Act which is a consolidation of Senate Bill No. 2553 and House Bill No. 4115 was finally passed by the Senate and the House of Representative on October 6, 2008 and October 8, 2008, respectively.

(Sgd.) MARILYN B. BARUA-YAPSecretary General

House of Representative

(Sgd.) EMMA LIRIO-REYESSecretary of the Senate

Approved: DEC 19, 2008

(Sgd.) GLORIA MACAPAGAL-ARROYOPresident of the Philippines

PRESIDENTIAL DECREE No. 1216

DEFINING "OPEN SPACE" IN RESIDENTIAL SUBDIVISIONS AND AMENDING SECTION 31 OF PRESIDENTIAL DECREE NO. 957 REQUIRING SUBDIVISION OWNERS TO PROVIDE ROADS, ALLEYS, SIDEWALKS AND RESERVE OPEN SPACE FOR PARKS OR RECREATIONAL USE

WHEREAS, there is a compelling need to create and maintain a healthy environment in human settlements by providing open spaces, roads, alleys and sidewalks as may be deemed suitable to enhance the quality of life of the residents therein;

WHEREAS, such open spaces, roads, alleys and sidewalks in residential subdivision are for public use and are, therefore, beyond the commerce of men;

WHEREAS, pursuant to Presidential Decree No. 953 at least thirty percent (30%) of the total area of a subdivision must be reserved, developed and maintained as open space for parks and recreational areas, the cost of which will ultimately be borne by the lot buyers which thereby increase the acquisition price of subdivision lots beyond the reach of the common mass;

WHEREAS, thirty percent (30%) required open space can be reduced to a level that will make the subdivision industry viable and the price of residential lots within the means of the low income group and at the same time preserve the environmental and ecological balance through rational control of land use and proper design of space and facilities;

WHEREAS, pursuant to Presidential Decree No. 757, government efforts in housing, including resources, functions and activities to maximize results have been concentrated into one single agency, namely, the National Housing Authority;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree:

Section 1. For purposes of this Decree, the term "open space" shall mean an area reserved exclusively for parks, playgrounds, recreational uses, schools, roads, places of worship, hospitals, health centers, barangay centers and other similar facilities and amenities.

Section 2. Section 31 of Presidential Decree No. 957 is hereby amended to read as follows:

"Sec. 31. Roads, Alleys, Sidewalks and Open spaces. The owner as developer of a subdivision shall provide adequate roads, alleys and sidewalks. For subdivision projects one (1) hectare or more, the owner or developer shall reserve thirty percent (30%) of the gross area for open space. such open space shall have the following standards allocated exclusively for parks, playgrounds and recreational use:

(a) 9% of gross area for high density or social housing (66 to 100 family lot per gross hectare).

(b) 7% of gross area for medium-density or economic housing (21 to 65 family lot per gross hectare).

(c) 3.5 % of gross area low-density or open market housing (20 family lots and below per gross hectare).

These areas reserved for parks, playgrounds and recreational use shall be non-alienable public lands, and non-buildable. The plans of the subdivision project shall include tree planting on such parts of the subdivision as may be designated by the Authority.

Upon their completion as certified to by the Authority, the roads, alleys, sidewalks and playgrounds shall be donated by the owner or developer to the city or municipality and it shall be mandatory for the local governments to accept provided, however, that the parks and playgrounds may be donated to the Homeowners Association of the project with the consent of the city or municipality concerned. No portion of the parks and playgrounds donated thereafter shall be converted to any other purpose or purposes.

Section 3. Sections 2 and 5 of Presidential Decree No. 953 are hereby repealed and other laws, decrees, executive orders, institutions, rules and regulations or parts thereof inconsistent with these provisions are also repealed or amended accordingly.

Section 4. This Decree shall take effect immediately.

DONE in the City of Manila, this 14th day of October, in the year of Our Lord, nineteen hundred and seventy-seven.

REPUBLIC ACT No. 6552

AN ACT TO PROVIDE PROTECTION TO BUYERS OF REAL ESTATE ON INSTALLMENT PAYMENTS. (Rep. Act No. 6552)

Section 1. This Act shall be known as the "Realty Installment Buyer Act."Section 2. It is hereby declared a public policy to protect buyers of real estate on installment payments against onerous and oppressive conditions.Section 3. In all transactions or contracts involving the sale or financing of real estate on installment payments, including residential condominium apartments but excluding industrial lots, commercial buildings and sales to tenants under Republic Act Numbered Thirty-eight hundred forty-four, as amended by Republic Act Numbered Sixty-three hundred eighty-nine, where the buyer has paid at least two years of installments, the buyer is entitled to the following rights in case he defaults in the payment of succeeding installments:

(a) To pay, without additional interest, the unpaid installments due within the total grace period earned by him which is hereby fixed at the rate of one month grace period for every one year of installment payments made: Provided, That this right shall be exercised by the buyer only once in every five years of the life of the contract and its extensions, if any.

(b) If the contract is canceled, the seller shall refund to the buyer the cash surrender value of the payments on the property equivalent to fifty per cent of the total payments made, and, after five years of installments, an additional five per cent every year but not to exceed ninety per cent of the total payments made: Provided, That the actual cancellation of the contract shall take place after thirty days from receipt by the buyer of the notice of cancellation or the demand for rescission of the contract by a notarial act and upon full payment of the cash surrender value to the buyer.

Down payments, deposits or options on the contract shall be included in the computation of the total number of installment payments made. lawphi1™

Section 4. In case where less than two years of installments were paid, the seller shall give the buyer a grace period of not less than sixty days from the date the installment became due.

If the buyer fails to pay the installments due at the expiration of the grace period, the seller may cancel the contract after thirty days from receipt by the buyer of the notice of cancellation or the demand for rescission of the contract by a notarial act.Section 5. Under Section 3 and 4, the buyer shall have the right to sell his rights or assign the same to another person or to reinstate the contract by updating the account during the grace period and before actual cancellation of the contract. The deed of sale or assignment shall be done by notarial act.Section 6. The buyer shall have the right to pay in advance any installment or the full unpaid balance of the purchase price any time without interest and to have such full payment of the purchase price annotated in the certificate of title covering the property.Section 7. Any stipulation in any contract hereafter entered into contrary to the provisions of Sections 3, 4, 5 and 6, shall be null and void.

Section 8. If any provision of this Act is held invalid or unconstitutional, no other provision shall be affected thereby. lawphi1™

Section 9. This Act shall take effect upon its approval.

Approved: August 26, 1972.

REPUBLIC ACT NO. 9397             March 18, 2007

AN ACT AMENDING SECTION 12 OF REPUBLIC ACT NO. 7279, OTHERWISE KNOWN AS THE URBAN DEVELOPMENT AND HOUSING ACT OF 1992, AND FOR OTHER PURPOSES

SECTION 1. Section 12 of Republic Act No. 7279, otherwise known as the "Urban Development and Housing Act of 1992," is hereby amended to read as follows:

"SEC. 12. Disposition of Lands for Socialized Housing. - The National Housing Authority, with respect to lands belonging to the National Government, and the local government units with respect to the other lands within their respective localities, shall coordinate with each other to formulate and make available various alternative schemes for the disposition of lands to the beneficiaries of the Program. These schemes shall not be limited to those involving transfer of ownership in fee simple but shall include lease, with option to purchase, usufruct or such other variations as the local government units or National Housing Authority may deem most expedient in carrying out the purposes of this Act."

"Consistent with this provision, a scheme for public rental housing may be adopted.

"Disposition of lands, including any improvements thereon, owned by the National Government or any of its agencies or instrumentalities and/or the local government units through direct negotiated sale to the occupants thereof without need of public bidding shall be allowed subject to the following conditions:

"a) The lands are within a residential zone as classified by the local government unit concerned;"b) The lands are certified to be for socialized housing purpose by the Housing and Urban Development Coordinating Council;"c) The occupants are qualified beneficiaries in accordance with Section 16 and are registered as such in accordance with Section 17 of this Act;

"d) The cost of said lands shall be made affordable to the beneficiaries, taking into consideration their income and land valuation required in Section 13 of this Act;"e) Any subsequent disposition of the said land shall be subject to the limitations provided in Section 14 of this Act; and"f) The occupants have resided on the said lands subject to the prohibitions provided in Section 30 of this Act."

SEC. 2. Separability Clause. - If any part or provision of this Act shall be held unconstitutional or invalid, other provision hereof that are not affected thereby shall continue to be in full force and effect.

SEC. 3. Repealing Clause. - All laws, presidential decrees, executive orders, rules, regulations, or parts thereof which are not consistent with this Act, are hereby repealed, amended or modified accordingly.

SEC. 4. Effectivity. - This Act shall take effect fifteen (15) days after its publication in at least two newspapers of general circulation.

Approved,

Republic Act No. 9646             June 29, 2009

AN ACT REGULATING THE PRACTICE OF REAL ESTATE SERVICE IN THE PHILIPPINES, CREATING FOR THE PURPOSE A PROFESSIONAL REGULATORY BOARD OF REAL ESTATE

SERVICE, APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::

ARTICLE ITITLE, DECLARATION OF POLICY AND DEFINITION OF TERMS

Section 1. Title. - This Act shall be known as the. "Real Estate Service Act of the Philippines".

Section 2. Declaration of Policy. - The State recognizes the vital role of real estate service practitioners in the social political, economic development and progress of the country by promoting the real estate market, stimulating economic activity and enhancing government income from real property-based transactions. Hence, it shall develop and nurture through proper and effective regulation and supervision a corps of technically competent, responsible and respected professional real estate service practitioners whose standards of practice and service shall be globally competitive and will promote the growth of the real estate industry.

Section 3. Definition of Terms. - As used in this Act, the following terms shall mean:

(a) "Appraiser" also known as valuer, refers to a person who conducts valuation/appraisal; specifically, one who possesses the necessary qualifications, license, ability and experience to execute or direct the valuation/appraisal of real property.

(b) "Assessor" refers to an official in the local government unit, who performs appraisal and assessment of real properties, including plants, equipment, and machineries, essentially for taxation purposes. This definition also includes assistant assessors.

(c) "Real estate" refers to the land and all those items which are attached to the land. It is the physical, tangible entity, together with all the additions or improvements on, above or below the ground.

(d) "Real estate development project" means the development of land for residential, commercial, industrial, agricultural, institutional or recreational purposes, or any combination of such including, but not limited to, tourist resorts, reclamation projects, building or housing projects, whether for individual or condominium ownership, memorial parks and others of similar nature.

(e) "Real estate developer" refers to any natural or juridical person engaged in the business of developing real estate development project for his/her or its own account and offering them for sale or lease.

(f) "Real property" includes all the rights, interests and benefits related to the ownership of real estate.

(g) "Real estate service practitioners" shall refer to and consist of the following:

(1) Real estate consultant - a duly registered and licensed -natural person who, for a professional fee, compensation or other valuable consideration, offers or renders professional advice and judgment on: (i) the acquisition, enhancement, preservation, utilization or disposition of lands or improvements thereon; and (ii) the conception, planning, management and development of real estate projects.

(2) Real estate appraiser- a duly registered and licensed natural person who, for a professional fee, compensation or other valuable consideration, performs or renders, or offers to perform services in estimating and arriving at an opinion of or acts as an expert on real estate values, such services of which shall be finally rendered by the preparation of the report in acceptable written form.

(3) Real estate assessor - a duly registered and licensed natural person who works in a local government unit and performs appraisal and assessment of real properties, including plants, equipment, and machineries, essentially for taxation purposes.

(4) Real estate broker - a duly registered and licensed natural person who, for a professional fee, commission or other valuable consideration, acts as an agent of a party in a real estate transaction to offer, advertise, solicit, list, promote, mediate, negotiate or effect the meeting of the minds on the sale, purchase, exchange, mortgage, lease or joint venture, or other similar transactions on real estate or any interest therein.

(5) Real estate salesperson - a duly accredited natural person who performs service for, and in behalf of. a real estate broker who is registered and licensed by the Professional Regulatory Board of Real Estate Service for or in expectation of a share in the commission, professional fee, compensation or other valuable consideration.

ARTICLE IIPROFESSIONAL REGULATORY BOARD OF REAL ESTATE SERVICE

Section 4. Creation and Composition of the Board. - There is hereby created a Professional Regulatory Board of Real Estate Service, hereinafter referred to as the Board, under the supervision and administrative control of the Professional Regulation Commission (PRC), hereinafter referred to as the Commission, composed of a chairperson and four (4) members who shall be appointed by the President of the Philippines from the three (3) recommendees chosen by the Commission from a list of five (5) nominees per position submitted by the accredited and integrated professional organization of real estate service practitioners: Provided, That two (2) of the members of the Board shall represent the government assessors and appraisers.

The first Board shall be organized within six (6) months from the effectivity of this Act.

Section 5. Powers and Functions of the Board. - The Board is hereby vested the following powers and functions:

(a) Provide comprehensive policy guidelines for the promotion and development of the real estate industry;

(b) Conduct licensure examinations for the practice of the real estate service profession and prescribe the appropriate, syllabi of the subjects for examination;

(c) Issue, suspend, revoke or reinstate, after due notice and hearing, certificates of registration or professional identification cards for the practice of real estate service;

(d) Maintain a comprehensive and updated register of licensed real estate service professionals;

(e) Monitor the conditions affecting the practice of real estate service and adopt such measures as may be proper for the enhancement of the profession and/or the maintenance of high professional, ethical and technical standards;

(f) Adopt a national Code of Ethics and Responsibilities to be strictly observed by all licensed real estate service practitioners;

(g) Hear or investigate any violation of this Act, its implementing rules and regulations, and the Code of Ethics and Responsibilities for real estate service practitioners and issue subpoena and subpoena duces tecum to secure the appearance of witnesses and the production of documents in connection therewith;

(h) Safeguard and protect legitimate and licensed real estate service practitioners and, in coordination with the accredited and integrated professional organization of real estate service practitioners, monitor all forms of advertisements, announcements, signboards, billboards, pamphlets, brochures and others of similar nature concerning real estate and, where necessary, exercise its quasi-judicial and administrative powers to finally and completely eradicate the pernicious practices of unauthorized or unlicensed individuals;

(i) Prescribe, in cooperation with the Commission on Higher Education (CHED) or the concerned state university or college, the essential requirements as to the curricula and facilities of schools, colleges or universities seeking permission to open academic courses or already offering such courses in real estate service, and to see to it that these requirements, including the employment of qualified faculty members, are properly complied with;

(j) Promulgate, .administer and enforce rules and regulations necessary in carrying out the provisions of this Act;

(k) Supervise and regulate the registration, licensure and practice of real estate service in the Philippines;

(l) Assess and fix the rate of reasonable regulatory fees;

(m) Administer oaths and affirmations;

(n) Adopt an official seal of the Board;

(o) Evaluate periodically the status of real estate service education and profession, and recommend and/or adopt measures to upgrade and maintain its high standard;

(p) Prescribe guidelines and criteria for the Continuing Professional Education (CPE) program for real estate service practitioners in consultation with the accredited and integrated professional organization of real estate service practitioners;

(q) Screen, issue and monitor permits to organizations of real estate professionals in the conduct of seminars and accredit such seminars pursuant to the CPE program, as well as the instructors or lecturers therein, for the purpose of upgrading the quality and knowledge of the profession;

(r) Monitor and supervise the activities of the accredited and integrated professional organization and other associations of real estate service practitioners; and

(s) Discharge such other powers, duties and functions as the Commission may deem necessary to carry out the provisions of this Act.

The policies, resolutions and rules and regulations issued or promulgated by the Board shall be subject to the review and approval by the Commission. However, the Board's decisions, resolutions or orders which are not interlocutory, rendered in an administrative case, shall be subject to review by the Commission only on appeal.

Section 6. Qualifications of the Chairperson and Members of the Board. - The chairperson and the members of the Board shall, at the time of their appointment, possess the following qualifications:

(a) A citizen and resident of the Philippines;

(b) A holder of a bachelor's degree related to real estate;

(c) An active licensed practitioner of real estate service for at least ten (10) years prior to his/her appointment;

(d) A bona fide member in good standing of the accredited and integrated professional organization of real estate service practitioners but not an officer or trustee at the time of his/her appointment;

(e) Neither be a member of the faculty of an institute, school, college or university, nor have any pecuniary interest, direct or indirect, in any institution or association where review classes or lectures in preparation for the licensure examination are being offered or conducted; and

(f) Of good moral character, and must not have been convicted by final judgment by a competent court of a criminal offense involving moral turpitude.

Section 7. Term of Office. - The chairperson and the members of the Board shall hold office for a term of three (3) years from the date of their appointment and until their successor/s shall have been appointed: Provided, That the members of the first appointed Board shall hold office for the following terms: one (1) member as chairperson, to serve for three (3) years; two (2) members, to serve for two (2) years; and two (2) members, to serve for one (1) year.

The chairperson and the members of the Board may be reappointed for a second term but in no case shall he/she serve continuously for more than six (6) years. Any vacancy in the Board shall be filled for the unexpired portion of the term of the member who vacated the position. On the constitution of the first Board, the chairperson and the members of the Board shall automatically be registered and issued certificates of registration and professional identification cards. Each member of the Board shall take the proper oath of office prior to the assumption of duty.

Section 8. Compensation and Allowances of the Chairperson and Members of the Board. - The chairperson and the members of the Board shall receive compensation and allowances comparable to the compensation and allowances received by the chairman and the members of existing professional regulatory boards under the Commission, as provided for in the General Appropriations Act.

Section 9. Removal of the Chairperson and Members of the Board. - The chairperson or any member of the Board may be suspended or removed by the President of the Philippines, upon the recommendation of the Commission, for neglect of duty; abuse of power; oppression; incompetence; unprofessional, unethical, immoral or dishonorable conduct; commission or toleration of irregularities in the conduct of examination or tampering of the grades therein, or for any final judgment or conviction of any criminal offense involving moral turpitude.

Section 10. Supervision of the Board, Custodian of its Records, Secretariat and Support Services. - The Board shall be under the general supervision and administrative control of the Commission. All records of the Board, including applications for examination, examination papers and results, minutes of deliberations, administrative and other investigative cases involving real estate service practitioners, shall be kept by the Commission. The Commission shall designate the

secretary of the Board and shall provide the secretariat and other support services to implement the provisions of this Act subject to the usual government accounting and auditing rules and regulations.

Section 11. Annual Report. - The Board shall, at the close of each calendar year, submit an annual report to the Commission, giving a detailed account of its proceedings and accomplishments during the year and recommending measures to be adopted with the end-in-view of upgrading and improving the conditions affecting the practice of real estate service in the Philippines.

ARTICLE IIILICENSURE EXAMINATION AND REGISTRATION

Section 12. Licensure Examination. - Every applicant seeking to be registered and licensed as a real estate service practitioner, except a real estate salesperson, shall undergo an examination as provided for in this Act. Examinations for the practice of real estate service in the Philippines shall be given by the Board at least once every year in such places and dates as the Commission may designate.

Section 13. Scope of Examination. - An examination shall be given to the licensure applicants for real estate brokers, real estate appraisers and real estate consultants which shall include, but not limited to, the following:

(a) For real estate consultants - fundamentals of real estate consulting; standards and ethics; consulting tools and techniques, which include project feasibility study and investment measurement tools; real estate finance and economics; real estate consulting and investment analyses; consulting for specific engagement, which includes consulting for commercial, industrial, recreation and resort and hotel properties, and consulting for government and corporate and financial institutions; land management system and real property laws; and any other related subjects as may be determined by the Board;

(b) For real estate appraisers - fundamentals of real estate principles and practices; standards and ethics; theories and principles in appraisal; human and physical geography; methodology of appraisal approaches; valuation procedures and research; appraisal of machinery and equipment; practical appraisal mathematics; appraisal report writing; real estate finance and economics; case studies; land management system and real property laws; and any other related subjects as may be determined by the Board; and

(c) For real estate brokers - fundamentals of property ownership; code of ethics and responsibilities; legal requirements for real estate service practice; real estate brokerage practice; subdivision development; condominium concept; real estate finance and economics; basic principles of ecology; urban and rural land use; planning, development and zoning; legal aspect of sale, mortgage and lease; documentation and registration; real property laws; and any other related subjects as may be determined by the Board.

To conform with technological and modern developments, the Board may recluster, rearrange, modify, add to, or exclude any of the foregoing subjects as may be necessary.

Section 14. Qualification of Applicants for Examinations. - In order to be admitted to the licensure examination for real estate service, a candidate shall, at the time of filing his/her application, establish to the satisfaction of the Board that he/she possesses the following qualifications:

(a) A citizen of the Philippines;

(b) A holder of a relevant bachelor's degree from a state university or college, or other educational institution duly recognized by the CHED: Provided, That as soon as a course leading to a Bachelor's degree in Real Estate Service is implemented by the CHED, the Board shall make this course a requirement for taking the "licensure examination; and

(c) Of good moral character, and must not have been convicted of any crime involving moral turpitude:Provided, That an applicant for the licensure examination for real estate consultants must show proof that he/she has at least ten (10) years experience as a licensed real estate broker or an assessor, or as a bank or institutional appraiser or an employed person performing real property valuation, or at least five (5) years experience as a licensed real estate appraiser.

All applications for examination shall be filed with the Board which shall assess and approve said applications and issue to the qualified examinees the corresponding permits to take such examination.

Section 15. Ratings in the Examination. - In order that a candidate may be deemed to have successfully passed the examination, he/she must have obtained an average of at least seventy-five percent (75%) in all subjects, with no rating below fifty percent (50%) in any subject.

Section 16. Release of the Results of Examination. - The results of the licensure examination shall be released by the Board within ten (10) days from the last day of the examination.

Section 17. Issuance of the Certificate of Registration and Professional Identification Card. - A certificate of registration shall be issued to examinees who pass the licensure examination for real estate service subject to payment of fees prescribed by the Commission. The certificate of registration shall bear the signature of the chairperson of the Commission and the chairperson and the members of the Board, stamped with the official seal of the Commission, indicating that the person named therein is entitled to practice the profession with all the benefits and privileges appurtenant thereto. This certificate of registration shall remain in full force and effect until revoked or suspended in accordance with this Act.

A professional identification card bearing the registration number, date of issuance and expiry date, duly signed by the chairperson of the Commission, shall likewise be issued to every registrant upon payment of the required fees. The professional identification card shall be renewed every three (3) years and upon satisfying the requirements of the Board such as, but not limited to, attendance in the CPE program.

Section 18. Refusal to Register. - The Board shall not register and issue a certificate of registration to any successful examinee who has been convicted by a court of competent jurisdiction of any criminal offense involving moral turpitude or has been found guilty of immoral or dishonorable conduct after investigation by the Board, or has been found to be psychologically unfit.

Section 19. Revocation or Suspension of the Certificate of Registration and the Professional Identification Card or Cancellation of Special/Temporary Permit. - The Board may, after giving proper notice and hearing to the party concerned, revoke the certificate of registration and the professional identification card, or cancel the special/temporary permit of a real estate service practitioner, or suspend him/her from the practice of the profession on any of the following instances hereunder:

(a) Procurement of a certificate of registration and/or professional identification card, or special/temporary permit by fraud or deceit;

(b) Allowing an unqualified person to advertise or to practice the profession by using one's certificate of registration or professional identification card, or special/temporary permit;

(c) Unprofessional or unethical conduct;

(d) Malpractice or violation of any of the provisions of this Act, its implementing rules and regulations, and the Code of Ethics and Responsibilities for real estate service practitioners; and

(e) Engaging in the practice of the profession during the period of one's suspension.

Section 20. Registration Without Examination, - Upon application and payment of the required fees, the following shall be registered, and shall be issued by the Board and the Commission a certificate of registration and a professional identification card without taking the prescribed examination:

(a) Those who, on the date of the effectivity of this Act, are already licensed as real estate brokers, real estate appraisers or real estate consultants by the Department of Trade and Industry (DTI) by virtue of Ministry Order No. 39, as amended: Provided, That they are in active practice as real estate brokers, real estate appraisers and real estate consultants, and have undertaken relevant CPE to the satisfaction of the Board;

(b) Assessors and appraisers who, on the date of the effectivity of this Act, hold permanent appointments and are performing actual appraisal and assessment functions for the last five (5) years, have passed the Real Property Assessing Officer (RPAO) examination conducted and administered by the Civil Service Commission (CSC) in coordination with the Department of Finance (DOF), and have undertaken relevant CPE to the satisfaction of the Board; and

(c) Assessors and appraisers who, on the date of the effectivity of this Act, hold permanent appointments and have at least ten (10) years actual experience in real property appraisal or assessment and have completed at least one hundred twenty (120) hours of accredited training on real property appraisal conducted by national or international appraisal organizations or institutions/entities recognized by the Board and relevant CPE to the satisfaction of the Board.

Those falling under categories (b) and (c) shall register with the Board after they shall have complied with the requirements for registration as real estate appraisers: Provided, That those seeking to be licensed to a new credential level shall be required to take the pertinent licensure examination.

Those so exempt under the aforementioned categories shall file their application within two (2) years from the effectivity of this Act: Provided, That the renewal of the professional identification card is subject to the provisions of Section 17 hereof.

Section 21. Reinstatement, Reissuance or Replacement of Certificate of Registration, Professional Identification Card and Special/Temporary Permit. - The Board may, after the expiration of two (2) years from the date of revocation of a certificate of registration and/or professional identification card, and upon application, compliance with the required CPE units, and

for reasons deemed proper and sufficient, reinstate any revoked certificate of registration and reissue a suspended professional identification card and in so doing, may, in its discretion, exempt the applicant from taking another examination.

A new certificate of registration, professional identification card or special/temporary permit may be issued to replace lost, destroyed or mutilated ones, subject to the rules as may be promulgated by the Board.

Section 22. Roster of Real Estate Service Practitioners. - The Board, in coordination with the integrated professional organization of real estate service practitioners, shall prepare, update and maintain a roster of real estate service practitioners which shall contain the names of all registered real estate service practitioners, their residence and office addresses, license number, dates of registration or issuance of certificates, and other data which.the Board may deem pertinent. Copies thereof shall be made available to the public upon request.

Section 23. Issuance of Special/Temporary Permit. - Upon application and payment of the required fees and. subject to the approval of the Commission, the Board may issue special/temporary permit to real estate service practitioners from foreign countries whose services are urgently needed in the absence or unavailability of local real estate service^ practitioners for the purpose of promoting or enhancing the practice of the profession in the Philippines.

Section 24. Foreign Reciprocity. - No foreign real estate service practitioner shall be admitted to the licensure examination or be given a certificate of registration or a professional identification card, or be entitled to any of the privileges under this Act unless the country of which he/she is a citizen specifically allows Filipino real estate service practitioners to practice within its territorial limits on the same basis as citizens of such foreign country.

ARTICLE IVPRACTICE OF REAL ESTATE SERVICE

Section 25. Oath. - All successful examinees qualified for registration and all qualified applicants for registration without examination as well as accredited salespersons shall be required to take an oath before any member of the Board or any officer of the Commission duly authorized by the Commission to administer oaths prior to entering into the practice of real estate service in the Philippines.

Section 26. Professional Indemnity Insurance/Cash or Surety Bond. - All real estate brokers and private real estate appraisers shall, in addition to the oath referred to in the preceding section, be required to post a professional indemnity insurance/cash or surety bond, renewable every three (3) years, in an amount to be determined by the Board, which in no case shall be less than Twenty thousand pesos (P20,000.00), without prejudice to the additional requirement of the client.

Section 27. Acts Constituting the Practice of Real Estate Service. - Any single act or transaction embraced within the provisions of Section 3(g) hereof, as performed by real estate service practitioners, shall constitute an act of engaging in the practice of real estate service.

Section 28. Exemptions from the Acts Constituting the Practice of Real Estate Service. - The provisions of this Act and its rules and regulations shall not apply to the following":

(a) Any person, natural or juridical, who shall directly perform by himself/herself the acts mentioned in Section 3 hereof with reference to his/her or its own property, except real estate developers;

(b) Any receiver, trustee or assignee in bankruptcy or insolvency proceedings;

(c) Any person acting pursuant to the order of any court of justice;

(d) Any person who is a duly constituted attorney-in-fact for purposes of sale, mortgage, lease or exchange, or other similar contracts of real estate, without requiring any form of compensation or remuneration; and

(e) Public officers in the performance of their official duties and functions, except government assessors and appraisers.

Section 29. Prohibition Against the Unauthorized Practice of Real Estate Service. - No person shall practice or offer to practice real estate service in the Philippines or offer himself/herself as real estate service practitioner, or use the title, word, letter, figure or any sign tending to convey the impression that one is a real estate service practitioner, or advertise or indicate in any manner whatsoever that one is qualified to practice the profession, or be appointed as real property appraiser or assessor in any national government entity or local government unit, unless he/she has satisfactorily passed the licensure examination given by the Board, except as otherwise provided in this Act, a holder of a valid certificate of registration, and professional identification card or a valid special/temporary permit duly issued to him/her by the Board and the Commission, and in the case of real estate brokers and private appraisers, they have paid the required bond as hereto provided.

Section 30. Positions in Government Requiring the Services of Registered and Licensed Real Estate Service Practitioners. - Within three (3) years from the effectivity of this Act, all existing and new positions in the national and local governments, whether career, permanent, temporary or contractual, and primarily requiring the services of any real estate service practitioner, shall be filled only by registered and licensed real estate service practitioners.

All incumbent assessors holding permanent appointments shall continue to perform their functions without need for re appointment and without diminution of status, rank and salary grade, and shall enjoy security of tenure. However, they may not be promoted to a higher position until they meet the qualification requirements of that higher position as herein prescribed. Nothing in this Act shall be construed to reduce any benefit, interest, or right enjoyed by the incumbents at the time of the enactment of this Act. The appointing authority shall exercise his power to appoint the assessor in accordance with the provisions of this Act only when a vacancy occurs.

Section 31. Supervision of Real Estate Salespersons. - For real estate salespersons, no examination shall be given, but they shall be accredited by the Board: Provided, That they have completed at least two (2) years of college and have undergone training and seminars in real estate brokerage, as may be required by the Board. Real estate salespersons shall be under the direct supervision and accountability of a real estate broker. As such, they cannot by themselves be signatories to a written agreement involving a real estate transaction unless the real estate broker who has direct supervision and accountability over them is also a signatory thereto. No real estate salesperson, either directly or indirectly, can negotiate, mediate or transact any real estate transaction for and in behalf of a real estate broker without first securing an authorized accreditation as real estate salesperson for the real estate broker, as prescribed by the Board. A real estate broker shall be guilty of violating this Act for employing or utilizing the services of a real estate

salesperson when he/she has not secured the required accreditation from the Board prior to such employment.

No salesperson shall be entitled to receive or demand a fee, commission or compensation of any kind from any person, other than the duly licensed real estate broker who has direct control and supervision over him, for any service rendered or work done by such salesperson in any real estate transaction.

No violation of this provision shall be a cause for revocation or suspension of the certificate of registration of the real estate broker unless there was actual knowledge of such violation or the broker retains the benefits, profits or proceeds of a transaction wrongfully negotiated by the salesperson.

Section 32. Corporate Practice of the Real Estate Service. -

(a) No partnership or corporation shall engage in the business of real estate service unless it is duly registered with the Securities and Exchange Commission (SEC), and the persons authorized to act for the partnership or corporation are all duly registered and licensed real estate brokers, appraisers or consultants, as the case may be. The partnership or corporation shall regularly submit a list of its real estate service practitioners to the Commission and to the SEC as part of its annual reportorial requirements. There shall at least be one (1) licensed real estate broker for every twenty (20) accredited salespersons.

(b) Divisions or departments of partnerships and corporations engaged in marketing or selling any real estate development project in the regular course of business must be headed by full-time registered and licensed real estate brokers.

(c) Branch offices of real estate brokers, appraisers or consultants must be manned by a duly licensed real estate broker, appraiser or consultant as the case may be.

In case of resignation or termination from employment of a real estate service practitioner, the same shall be reported by the employer to the Board within a period not to exceed fifteen (15) days from the date of effectivity of the resignation or termination.

Subject to the provisions of the Labor Code, a corporation or partnership may hire the services of registered and licensed real estate brokers, appraisers or consultants on commission basis to perform real estate services and the latter shall be deemed independent contractors and not employees of such corporations.

Section 33. Display of License in the Place of Business. - Every registered and licensed real estate service practitioner shall establish and maintain a principal place of business and such other branch offices as may be necessary, and shall conspicuously display therein the original and/or certified true copies of his/her certificate of registration as well as the certificates of registration of all the real estate service practitioners employed in such office.

Section 34. Accreditation and Integration of Real Estate Service Associations. - All real estate service associations shall be integrated into one (1) national organization, which shall be recognized by the Board, subject to the approval of the Commission, as the only accredited and integrated professional organization of real estate service practitioners.

A real estate service practitioner duly registered with the Board shall automatically become a member of the accredited and integrated professional organization of real estate service practitioners, and shall receive the benefits and privileges appurtenant thereto. Membership in the accredited and integrated professional organization of real estate service practitioners shall not be a bar to membership in other associations of real estate service practitioners.

Section 35. Code of Ethics and Responsibilities for Real Estate Service Practitioners. - The Board shall adopt and promulgate the Code of Ethics and Responsibilities for real estate service practitioners which shall be prescribed and issued by the accredited and integrated professional organization of real estate service practitioners.

Section 36. Continuing Professional Education (CPE) Program. - The Board shall develop, prescribe and promulgate guidelines on CPE upon consultation with the accredited and integrated professional organization of real estate service practitioners, affiliated association of real estate service practitioners and other concerned sectors, and in accordance with such policies as may have been prescribed by the Board, subject to the approval of the Commission. The Board shall create a CPE Council that shall be composed of a chairperson coming from the Board, a member from the accredited and integrated professional organization of real estate service practitioners and a member from the academe.

Section 37. Enforcement Assistance to the Board. - The Board shall be assisted by the Commission in carrying out the provisions of this Act and its implementing rules and regulations and other policies. The lawyers of the Commission shall act as prosecutors against illegal practitioners and other violators of this Act and its rules. The duly constituted authorities of the government shall likewise assist the Board and the Commission in enforcing the provisions of this Act and its rules.

Section 38. Indication of the Certificate of Registration, Professional Identification Card/License Number, Privilege Tax Receipt (PTR) Number and Accredited Professional Organization (APO) Number. - Real estate service practitioners shall be required to indicate the certificate of registration, professional identification card, PTR number, and APO receipt number, and the date of issuance and the duration of validity on the documents he/she signs, uses or issues in connection with the practice of his/her profession.

ARTICLE VPENAL AND FINAL PROVISIONS

Section 39. Penal Provisions, - Any violation of this Act, including violations of implementing rules and regulations, shall be meted the penalty of a fine of not less than One hundred thousand pesos (P100,000.00) or imprisonment of not less than two (2) years, or both such fine and imprisonment upon the discretion of the court. In case the violation is committed by an unlicensed real estate service practitioner, the penalty shall be double the aforesaid fine and imprisonment.

In case the violation is committed, by a partnership, corporation, association or any other juridical person, the partner, president, director or manager who has committed or consented to or knowingly tolerated such violation shall be held directly liable and responsible for the acts as principal or as a co-principal with the other participants, if any.

Section 40. Appropriations. - The chairperson of the Professional Regulation Commission shall immediately include in the Commission's programs the implementation of this Act, the funding of which shall be included in the annual General Appropriations Act and thereafter.

Section 41. Transitory Provision. - Within ninety (90) days from the effectivity of this Act, the DTI - Bureau of Trade Regulation and Consumer Protection (BTRCP) shall transfer all pertinent records, documents and other materials to the Professional Regulatory Board of Real Estate Service.

Section 42. Implementing Rules and Regulations. - Within six (6) months after the effectivity of this Act, the Commission, together with the Board and the accredited and integrated professional organization of real estate service practitioners, the Department of Finance, and the CHED, shall prepare the necessary rules and regulations, including the Code of Ethics and Responsibilities for real estate service practitioners, needed to implement the provisions of this Act.

Section 43. Separability Clause. - If any clause, sentence, paragraph or part of this Act shall be declared unconstitutional or invalid, such judgment shall not affect, invalidate or impair any other part of this Act.

Section 44. Repealing Clause. -

(a) Sections 3(e) and (ee) of Act No. 2728, as amended by Act No. 3715 and Act No. 3969, Sections 472 and 473 of the Local Government Code of 1991 (Republic Act No. 7160), and pertinent provisions of the Civil Service Law are hereby modified accordingly.

(b) All laws, decrees, executive orders, department or memorandum orders and other administrative issuances or parts thereof which are inconsistent with the provisions of this Act are hereby modified, superseded or repealed accordingly.

Section 45. Effectivity. - This Act shall take effect fifteen (15) days following its publication in the Official Gazetteor in a major daily newspaper of general circulation in the Philippines.

Approved.